Hyperliquid Demands Five Critical Fixes to SEC Crypto Proposal - TradingView

Hyperliquid has submitted formal comments urging the SEC to revise its crypto proposal, outlining five critical fixes it says are needed before the framework can work in practice. The exchange's pushback highlights a growing friction point: rulemaking drafted with traditional intermediaries in mind may not map cleanly onto decentralized trading venues.

The substance of the five fixes matters less than the signal. When a major on-chain venue engages directly with regulators, it suggests the industry is shifting from blanket opposition toward targeted, technical input—an approach that can shape how compliance obligations are eventually calibrated for platforms that never hold customer assets in the conventional sense.

For market participants, the takeaway is procedural. Comments like these feed into a rulemaking process that can take months to resolve, and the final text will determine which venues face registration, disclosure, or custody requirements. Watching how the SEC responds—and whether other decentralized platforms file similar feedback—offers a useful gauge of where regulatory risk is heading for the sector.