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      Hyperliquid Policy Center Advocates for Exclusion of Airdrops from Securities Definition

      The Hyperliquid Policy Center has called on the U.S. Securities and Exchange Commission (SEC) to formally exclude airdrops from the definition of securities. In a statement, the center emphasized that the SEC's proposed position from March 2026 should be incorporated into regulatory rules, asserting that free airdrops do not represent a 'monetary investment' and therefore should not be classified as investment contracts.

      The center's proposal extends to announced airdrops, including those that are periodic or regular. It outlines specific conditions under which airdrops should be exempt, such as the requirement that the network is operational and that eligibility is determined by user contributions like trading, validating, providing liquidity, or governance participation. The center argues that airdrops should not be viewed as financing mechanisms.

      Furthermore, the Hyperliquid Policy Center contends that investment necessitates tangible and identifiable consideration, asserting that airdrops serve as rewards rather than investments. It also states that processes involved in claiming airdrops, such as connecting wallets or completing identity verification, should not be interpreted as consideration. The center advocates for these rules to be retroactively applicable to previous airdrops, including those associated with Hyperliquid's own platform.

      © 2026 KLEA News. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

      Source: KLEA News

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