ChainCatcher reports that the Hyperliquid Policy Center has published a statement urging the U.S. Securities and Exchange Commission (SEC) to exclude airdrops from the definition of securities. The Center argues that the SEC’s position, proposed in March 2026, stating that free airdrops do not constitute a “money investment” and therefore are not investment contracts, should be formally codified into regulation. The Center further advocates extending this rule to publicly announced airdrops, including periodic or recurring distributions. Applicable conditions include: the network must be fully operational, eligibility must be based on usage or contribution—such as trading, validating, providing liquidity, or participating in governance—and the airdrop must not serve as a fundraising mechanism. The Center contends that an investment requires tangible and identifiable consideration, whereas airdrops are rewards, not investments. Actions such as connecting a wallet, signing messages, paying gas fees, completing KYC/AML, or accepting terms of service should not be considered consideration. Additionally, this rule should be applied retroactively to past airdrops or specifically cover Hyperliquid’s native airdrop.
Hyperliquid Policy Center Calls for Excluding Airdrops from the SEC’s Definition of Securities
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Summary
The Hyperliquid Policy Center has called for a change in SEC guidance, urging the agency to exclude airdrops from the definition of securities. The group argues that free airdrops lack the essential element of an investment of money and should not be classified as investment contracts. It supports the SEC’s 2026 proposal and seeks its formalization to cover routine airdrops linked to network usage or contribution. The center also advocates for updated crypto policy to clarify that airdrops are rewards, not investments, and that basic user actions should not constitute consideration. The rule should apply retroactively and prospectively, including to Hyperliquid’s own airdrops.
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