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

Bitwise and Hyperliquid have jointly asked the U.S. Securities and Exchange Commission to revise its crypto rulemaking and to clarify the standards used to determine when a token qualifies as a security. The request adds two more industry voices to an ongoing debate over how existing securities law should apply to digital assets, and it reflects a broader push by crypto firms for clearer, more predictable guidance from regulators rather than case-by-case enforcement.

The core issue is classification. Whether a token is treated as a security shapes which registration, disclosure, and compliance obligations apply to issuers, exchanges, and other intermediaries. For market participants, ambiguous standards can complicate token listings, product design, and cross-border operations, since firms must often interpret regulatory expectations without definitive rules. A clearer framework could reduce that uncertainty, though the substance of any revised standard—and how broadly it reaches—would matter as much as the fact of revision.

What to watch is how the SEC responds: whether it opens a formal rulemaking process, issues interpretive guidance, or declines to act. Also relevant is whether other industry players file similar requests, which could increase pressure for a coordinated approach. Until then, classification questions are likely to remain a key source of regulatory risk for token issuers and trading venues alike.