Bitwise Asset Management and the Hyperliquid Policy Center have submitted comment letters to the US Securities and Exchange Commission regarding the proposed Regulation Crypto Assets. The firms are requesting more precise definitions for token classifications, airdrops, and secondary-market trading as the public comment period concludes.
Bitwise requested that the SEC establish a standard for investment managers to determine if a crypto asset is subject to securities laws using publicly available data. The firm also sought clarification on the use of Form TR filings, which certify that an investment contract has ceased to exist, and guidance for tokens lacking such documentation.
The Hyperliquid Policy Center argued that the current safe harbor proposal is insufficient for early-stage projects. The organization requested explicit protections for airdrops that incentivize network participation and guidance on token buybacks. Additionally, Hyperliquid highlighted the need for clarity regarding unregistered intermediaries and onchain protocol trading.
Conversely, former SEC official John Reed Stark and Duke University scholar Lee Reiners have urged the commission to withdraw the proposal entirely. They contend that the current framework, including the Howey test, is sufficient and that the proposed exemptions would undermine investor protections and invite legal challenges.
