Crypto Advocates Push SEC and Treasury to Clarify Defi Rules

WHO:

Cointelegraph - Bitwise and Hyperliquid are seeking changes to Securities and Exchange Commission (SEC) rules for token trading and airdrops.

NewsBTC - The Hyperliquid Policy Center supports the SEC’s proposed crypto framework and urged the commission to revise its proposed Regulation Crypto Assets framework.

NewsBTC - The Blockchain Association asked the US Treasury to clarify proposed GENIUS Act rules affecting decentralized finance (DeFi), foreign stablecoin issuers, and potential liability.

NewsBTC - The Hyperliquid Policy Center’s comment was written by the News Desk and edited by Samuel Rae; the Blockchain Association article was also written by the News Desk and edited by Samuel Rae.

WHAT:

Cointelegraph - Bitwise and Hyperliquid are seeking clearer guidance on crypto-asset classification and secondary-market trading as the SEC’s public comment period closes.

NewsBTC - The Hyperliquid Policy Center called for five changes to the SEC’s proposed framework, addressing administrative steps in token airdrops, trading after exempt distributions, safe-harbour protection for mature projects, token buybacks, and coordination between federal exemptions and state securities requirements.

NewsBTC - The Blockchain Association argued that GENIUS Act rules should not unintentionally cover unrelated software and market participants.

NewsBTC - The association urged Treasury to distinguish customer-facing financial businesses from infrastructure such as self-custody software and validators.

NewsBTC - The association said enforcement for knowing participation in unlawful stablecoin issuance should require genuine knowledge and meaningful assistance, not treat ordinary secondary-market activity as evidence of involvement.

NewsBTC - For foreign-issued stablecoins, the association said compliance should rely on accessible regulatory information rather than assume service providers can investigate issuers with whom they have no direct relationship.

NewsBTC - The association’s recommendations are advocacy positions; Treasury has not adopted them.

WHERE:

NewsBTC - The proposed crypto and stablecoin rules concern US securities regulation and US Treasury implementation of the GENIUS Act.

WHEN:

NewsBTC - The Hyperliquid Policy Center published its comment on October 19.

WHY:

NewsBTC - The Hyperliquid Policy Center said revisions are needed to make the proposed rules workable for token developers and markets and to avoid unnecessary barriers.

NewsBTC - The Blockchain Association said clearer boundaries are needed so rules designed for regulated payment issuers do not inadvertently reach unrelated software and market participants.

HOW:

NewsBTC - The SEC’s proposal aims to make crypto-asset treatment more predictable; the commission’s final outcome will depend on its response to evidence and objections received during rulemaking.

NewsBTC - Treasury’s proposed Section 3 rules under the GENIUS Act are undergoing implementation; the eventual wording will determine whether compliance mainly affects stablecoin issuers or reaches the wider ecosystem.

(UPDATED October 21, 2026 00:32 UTC)

Bitwise and the Hyperliquid Policy Center are asking the SEC for clearer rules on crypto-token classification, trading, airdrops, and protections for mature projects. The Blockchain Association has urged the Treasury to narrow proposed GENIUS Act rules, distinguishing stablecoin issuers from infrastructure providers and requiring genuine knowledge and meaningful assistance before holding others liable. These are recommendations, not adopted rules, and the agencies’ final decisions will determine how the requirements affect the broader crypto industry.