Bitwise and Hyperliquid Push SEC for Clearer Crypto Rules
Two crypto firms have submitted comments urging the SEC to clarify how digital assets and airdrops are classified before the public comment window closes.
As the Securities and Exchange Commission's public comment period draws to a close, asset manager Bitwise and decentralized exchange Hyperliquid have both filed formal requests asking regulators to establish clearer rules governing the classification of crypto tokens and secondary-market trading activity. The submissions reflect growing industry frustration with regulatory ambiguity that has long complicated how firms structure token offerings and distributions.
At the center of both filings is a core question that has dogged digital-asset markets for years: when does a crypto token constitute a security, and what obligations does that status impose on platforms that facilitate its trading? Without explicit guidance, exchanges and issuers have been forced to operate under a patchwork of enforcement actions and informal signals rather than codified standards — a posture that critics argue stifles compliant innovation while doing little to protect retail investors.
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Hyperliquid's submission also targets the regulatory treatment of airdrops, the practice of distributing tokens directly to wallet holders as a promotional or community-building mechanism. The lack of clear rules around whether airdropped tokens qualify as securities has created compliance headaches for projects operating in the United States, and the firm is pushing the SEC to address that gap explicitly rather than leaving it to future enforcement discretion.
The timing of these filings is strategically significant. The SEC under the current administration has signaled a more open posture toward engaging with the crypto industry through formal rulemaking rather than litigation-first enforcement. Public comment submissions carry legal weight in the rulemaking process and can shape the contours of any final guidance that emerges. For firms like Bitwise and Hyperliquid, getting their positions on the record now is both a compliance strategy and a lobbying opportunity.
The broader industry will be watching closely to see whether these specific asks — around secondary-market trading frameworks and airdrop classification — gain traction in any forthcoming SEC guidance. Continue reading at Cointelegraph.
