Bitwise, Hyperliquid seek SEC rule changes for token trading, airdrops
The firms are seeking clearer guidance on the classification of crypto assets and secondary-market trading as the SEC’s public comment period comes to a close.
Asanat Analysis — Why it matters
Bitwise and Hyperliquid's filing signals a broader regulatory pivot: instead of fighting SEC classification frameworks, sophisticated platforms are seeking formalization of rules that already exist in practice. Token trading and airdrops occur across dozens of venues today with minimal enforcement action, suggesting the SEC may be willing to codify de facto standards rather than impose new restrictions. This shift from adversarial litigation posture to rule-clarification is material—it indicates regulated entities believe there's a workable middle ground with regulators rather than categorical prohibition.
The timing matters. As the comment period closes, these submissions could shape how the SEC interprets the Howey test for secondary-market transactions versus primary issuances. Clearer guidance on airdrops specifically would address a major liability vector for protocols and platforms: whether token distributions constitute unregistered securities offerings. If the SEC distinguishes between utility airdrops and promotional schemes, it de-risks the operational model for Layer 1s and yield protocols that rely on holder incentives. Expect this to influence how regulators handle the next wave of L2 token launches.