Bitwise and Hyperliquid demand SEC to clarify encryption rules, John Reed Stark and others demand withdrawal

Bitwise Asset Management and Hyperliquid Policy Center have submitted a comment letter to the US Securities and Exchange Commission (SEC) requesting clarification on token classification, airdrops, and secondary market trading rules. Bitwise requires clear criteria for investment managers to determine whether tokens are subject to securities laws. The Hyperliquid Policy Center requests to expand the scope of the safe harbor, clarify airdrop and token repurchase rules, and ensure compliance with unregistered intermediaries facilitating transactions and on chain protocol transactions. John Reed Stark and Lee Reiners have requested the withdrawal of the proposal, arguing that it exceeds the SEC's legal authority and weakens investor protection. (Source: SEC)