Hyperliquid Policy Center Urges SEC to Revise Crypto Rules

The Hyperliquid Policy Center has formally asked the U.S. Securities and Exchange Commission to revise its proposed crypto rules, pushing for five specific changes to the regulatory framework currently under consideration.

Five Changes Requested from the SEC

The Hyperliquid Policy Center, the advocacy arm focused on regulatory engagement for the Hyperliquid ecosystem, submitted its recommendations targeting the SEC’s proposed crypto rules. The group is urging the commission to make five substantive revisions before any final rules take effect, per CryptoPotato reporting. For context on recent HYPE price action, see coverage of Hyperliquid (HYPE) dropping 5% amid whale-selling pressure.

The submission follows growing pressure from decentralized exchange operators and on-chain derivatives platforms to shape rules that could directly affect how protocols like Hyperliquid operate under U.S. jurisdiction. Hyperliquid has already faced scrutiny on multiple regulatory fronts, including questions from Singapore regulators despite the platform’s local headquarters presence.

Public comment submissions of this kind become part of the official administrative record the SEC must consider when issuing a final rule. A letter from an industry policy center does not compel the agency to adopt changes, but regulators are required to address substantive comments in their final rulemaking decisions.

What Is at Stake in the Rulemaking

SEC rulemaking on digital assets moves through a notice-and-comment process: the agency proposes rules, opens a public comment window, reviews submissions, and then issues a final rule. Rules that impose broker-dealer registration, custody requirements, or reporting obligations on decentralized platforms could materially affect how Hyperliquid structures its operations.

The Bloomberg Terminal’s integration of real-time Hyperliquid prices underscores how mainstream the platform’s data has become, even as its regulatory status remains unsettled. Regulatory clarity has broader implications beyond a single protocol; the U.S. crypto economy has been losing ground to international competitors, a trend industry groups frequently cite when urging the SEC to adopt rules that don’t drive activity offshore.

What to Watch Next

The SEC has not publicly responded to the Hyperliquid Policy Center’s submission based on currently available reporting. The timing of any final rule depends on the SEC’s internal review schedule and whether the commission reopens the comment period following material revisions to its proposal.

Observers should monitor whether the final rule addresses the five requested changes or departs from them without explanation, which would likely invite legal challenge. Other federal agencies remain active in parallel; the CFTC has separately issued consumer warnings on crypto risks, signaling that oversight pressure across multiple agencies is intensifying regardless of how SEC rulemaking resolves. The SEC’s rulemaking record for this proposal is searchable via SEC.gov filings indexed by Google News.

Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency and digital asset markets carry significant risk. Always do your own research before making decisions.