Bitwise, Hyperliquid Push SEC for Crypto Rule Changes on Trading, Airdrops

SEC rule changes — Bitwise Asset Management and the Hyperliquid Policy Center have formally urged the U.S. Securities and Exchange Commission to revise its proposed crypto asset rules, seeking greater clarity on token classifications, airdrops, and secondary-market trading.

The comment letters were submitted as the SEC’s public comment period on its proposed ‘Regulation Crypto Assets’ closed on Tuesday. The framework aims to create exemptions for qualifying crypto fundraising and a conditional safe harbor for tokens linked to investment contracts.

Bitwise requested clearer guidance for investment managers on determining when a crypto asset is subject to securities laws, stressing the need for a standard based on publicly available information. Hyperliquid urged the SEC to broaden its proposed safe harbor and provide explicit protections for airdrops that reward network participation.

Separately, former SEC official John Reed Stark and scholar Lee Reiners argued the proposal should be withdrawn entirely, claiming it exceeds the agency’s authority and weakens investor protections. The SEC will now review all submissions before deciding whether to revise, adopt, or withdraw the proposed rules.