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Bitwise, Hyperliquid seek SEC rule changes for token trading, airdrops

Originally reported by CointelegraphPublished 21 Oct, 02:08 ISTAI analysis 21 Oct, 05:33 ISTRead the original article

What happened — 5 key points

1Bitwise Asset Management and the Hyperliquid Policy Center submitted comment letters asking the SEC to revise its proposed crypto regulations.
2Bitwise requested clearer standards for investment managers to determine if a crypto asset is subject to securities laws using public information.
3Hyperliquid urged the SEC to broaden its proposed safe harbor and provide clearer protections for airdrops and token buybacks.
4Former SEC official John Reed Stark and scholar Lee Reiners urged the SEC to withdraw the proposal entirely, citing legal overreach and weakened investor protections.
5The public comment period closes Tuesday, and the SEC will review submissions before deciding whether to revise, adopt, or withdraw the rules.

Key takeaway

Industry groups are pushing the SEC for clearer rules on token trading and airdrops, while critics argue the proposal should be withdrawn entirely due to investor protection concerns.

Short-term impact (days–weeks)

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Markets may experience regulatory debates as the SEC reviews public comments, without immediate price impacts.

Medium-term impact (1–3 months)

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Potential rule revisions or legal challenges could take months to unfold, leaving long-term policy direction uncertain.

Key risks

Regulatory uncertainty surrounding token classifications and secondary-market trading.
Potential legal challenges if the SEC proceeds with adopting the current proposed rules.
Disagreements between industry participants and investor protection advocates regarding statutory authority.

This page summarizes and analyzes publicly reported news. Read the full story at the original source. AI-generated analysis — not financial advice.

What happened — 5 key points

1Bitwise Asset Management and the Hyperliquid Policy Center submitted comment letters asking the SEC to revise its proposed crypto regulations.

2Bitwise requested clearer standards for investment managers to determine if a crypto asset is subject to securities laws using public information.

3Hyperliquid urged the SEC to broaden its proposed safe harbor and provide clearer protections for airdrops and token buybacks.

4Former SEC official John Reed Stark and scholar Lee Reiners urged the SEC to withdraw the proposal entirely, citing legal overreach and weakened investor protections.

5The public comment period closes Tuesday, and the SEC will review submissions before deciding whether to revise, adopt, or withdraw the rules.