Hyperliquid’s Policy Center calls for airdrops to be excluded from the definition of securities

The U.S. Securities and Exchange Commission (SEC) should explicitly exclude airdrops from the definition of “securities”—a formal recommendation issued by the Hyperliquid Policy Center in its latest policy statement. The Center proposes codifying, as binding regulation, the position the SEC articulated in March 2026: free airdrops lack the “investment of money” element and therefore do not constitute investment contracts under the Howey Test. Furthermore, this rule should cover all publicly announced airdrop programs—including those distributed on a periodic or fixed schedule—provided that the underlying blockchain network is already live and operational, eligibility is determined by genuine usage or substantive contributions (e.g., trading, validation, liquidity provision, or governance participation), and the airdrop itself is not used as a fundraising mechanism. The Policy Center stresses that an investment requires a tangible, identifiable consideration; airdrops, by nature, are incentive-based rewards—not investments. None of the typical claim steps—such as wallet connection, message signing, gas fee payment, KYC/AML completion, or acceptance of terms of service—should be construed as legal consideration. Additionally, the rule should apply retroactively to prior airdrops.