Hyperliquid Policy Center Urges SEC to Exclude Airdrops from the Definition of Securities

Huoxing Finance reports that on October 20, the Hyperliquid Policy Center is urging the U.S. Securities and Exchange Commission (SEC) to exclude airdrops from the definition of securities. Its specific proposals include: codifying the SEC’s position, proposed in March 2026, that free airdrops do not constitute a “money investment” and therefore do not qualify as investment contracts; extending this rule to publicly announced airdrops, including periodic or regular distributions, provided that the network is fully operational, eligibility is based on usage or contribution (trading, validating, providing liquidity, governance), and the airdrop is not a means of fundraising. The Hyperliquid Policy Center argues that an investment requires tangible and identifiable consideration, and that airdrops are rewards rather than investments; processes such as connecting a wallet, signing, paying gas fees, completing KYC/AML, or accepting terms of service should not be considered consideration. Additionally, this rule should apply retroactively to past airdrops or encompass Hyperliquid’s native airdrop.