SEC Regulation Crypto Assets: Industry Leaders Push for Clarity

The public comment period for the U.S. Securities and Exchange Commission's (SEC) proposed "Regulation Crypto Assets" officially concluded on November 3, 2026. This regulatory milestone has drawn significant attention from digital asset firms and legal experts, who have submitted formal feedback regarding the proposed framework. Key industry participants, including Bitwise and the Hyperliquid Policy Center, have utilized this period to advocate for more precise definitions and actionable guidelines within the evolving digital finance landscape.

Industry Demands for Precise Regulatory Frameworks

The feedback submitted to the commission centers on the need for unambiguous rules governing the classification of digital tokens. Bitwise and Hyperliquid emphasized that the current proposal lacks sufficient detail regarding several critical operations within the blockchain ecosystem. These organizations are calling for definitive answers on whether specific tokens qualify as securities, as well as clear protocols for:

• Secondary market intermediaries and their registration requirements.
• The regulatory status of token airdrops and community distributions.
• Legal frameworks for token buybacks and treasury management.
• Operational "safe harbor" provisions that are practical for developers.

A safe harbor provision typically provides legal protection for developers while they work toward decentralizing a project, provided they meet specific transparency criteria.

Calls for Withdrawal and Structural Concerns

Beyond requests for clarification, some market participants have expressed fundamental opposition to the "Regulation Crypto Assets" proposal in its current form. A group of commentators, which notably includes former SEC enforcement officials, has advocated for the complete withdrawal of the initiative. These critics argue that the proposal may not adequately address the unique technological architecture of decentralized finance (DeFi) and could lead to jurisdictional overlaps or stifled innovation within the United States.

The proposed safe harbor must be more actionable to provide the necessary legal certainty for projects attempting to comply with federal standards while maintaining decentralized operations.

The conclusion of the comment period marks a shift in the regulatory process, as the SEC must now review the submitted letters before deciding whether to finalize, amend, or discard the proposed rules. The outcome of this deliberation will likely have significant implications for the compliance strategies of cryptocurrency exchanges and asset managers operating within the American market. As the industry awaits a final ruling, the focus remains on achieving a balance between investor protection and the growth of the digital asset economy.