Bitwise, Hyperliquid Urge SEC to Revise Crypto Rule, Clarify Standards for Classifying Tokens as Securities - bloomingbit

Bitwise and Hyperliquid have jointly urged the U.S. Securities and Exchange Commission to revise its approach to crypto regulation, calling for clearer standards on when a token should be classified as a security. The request adds to a broader industry push for regulatory clarity in a market where the line between securities and commodities remains contested.

The classification question carries significant weight. Whether a token is deemed a security determines which registration, disclosure, and compliance obligations apply to issuers and trading platforms. Ambiguity on this point has shaped how exchanges list assets and how firms structure products, and it has contributed to caution among institutional participants.

For market observers, the key thing to watch is how the SEC responds—whether through formal rulemaking, updated guidance, or enforcement signals. Any movement toward defined criteria could reduce uncertainty for token issuers and platforms, while a continued case-by-case approach would leave interpretation largely to enforcement actions. The outcome may also influence how other jurisdictions calibrate their own frameworks, given the SEC's outsized role in shaping global regulatory expectations.