Crypto groups seek changes to SEC’s proposed rules
- Bitwise and the Hyperliquid Policy Center have submitted recommendations on the US Securities and Exchange Commission’s proposed Regulation Crypto Assets.
- Their proposals address token classifications, airdrops, fundraising exemptions and rules governing secondary-market trading.
- Both groups want clearer standards for crypto businesses, investors and other market participants.
Bitwise Asset Management and the Hyperliquid Policy Center have urged changes to the US Securities and Exchange Commission’s proposed crypto rules in separate letters dated 19 October 2026.
The SEC proposal includes a startup exemption for offerings up to $5 million over four years, a fundraising exemption of $75 million per 12 months, and a safe harbour for certain investment contracts.
The Hyperliquid Policy Center wrote, “We generally support the Proposal and urge its prompt adoption,” while warning that several provisions may not provide the intended certainty.
Bitwise wants the final rules to clarify how firms that do not issue tokens can assess whether crypto assets remain linked to investment contracts using publicly available information.
The Hyperliquid Policy Center also wants the SEC to clarify airdrop treatment, secondary-market trading rules and protections for projects still undertaking essential managerial work.
Its recommendations include clarifying when token airdrops constitute investment contracts, allowing qualifying assets distributed under the proposed exemptions to trade outside the issuer-registration framework, and refining rules for token buybacks.
Bitwise argues that outside firms lack access to issuers’ internal information, making it difficult to assess token status and potential risks to investment products.
The submissions add industry feedback to the SEC’s effort to establish clearer federal rules for crypto assets and related market activities.
