Blockworks and Hyperliquid Propose Changes to SEC's Regulation Crypto Assets
Blockworks has formally submitted a comment letter to the U.S. Securities and Exchange Commission (SEC) regarding its proposed Regulation Crypto Assets, which outlines a framework for token offerings in the United States. The letter, filed just before the October 20 deadline, advocates for allowing disclosures to be made on-chain and proposes the creation of a new regulatory category called a Qualified Onchain Disclosure Agent. This agent would be responsible for publishing required disclosures on behalf of token projects.
Blockworks emphasizes the need for transparency by requesting that Regulation Crypto Assets mandate disclosures related to market-maker agreements, liquidity arrangements, token loans, and payments to promoters. This proposal aligns with Blockworks' earlier initiative, the Token Transparency Framework (TTF), which aims to standardize disclosures regarding token allocations, governance structures, and risk assessments.
Meanwhile, the Hyperliquid Policy Center has also expressed support for the SEC's proposed framework but has identified five areas for improvement. Their suggestions include clarifying the treatment of token airdrops, the trading of tokens post-exempt distribution, and the protections offered by safe harbors for matured projects. They also call for clearer rules on token buybacks and a consistent approach to federal and state securities requirements.
Both organizations highlight the importance of these changes for token developers and investors, as the proposed regulations could significantly impact compliance costs and operational clarity in the evolving crypto landscape.
Updated 17:32 UTC
New Developments in SEC Regulation of Crypto Assets
Blockworks has proposed the creation of a new role, the Qualified Onchain Disclosure Agent (QODA), to the SEC in a comment letter dated October 20, 2026. This role aims to automate the disclosure of onchain data for token projects.
The proposal suggests that QODAs would operate independently and be standardized by the SEC, facilitating a more efficient disclosure process compared to traditional methods.
Blockworks is also advocating for the integration of specific line items from the existing Token Transparency Framework (TTF) into federal regulations, particularly focusing on token loans and market-maker agreements.
Since its launch in June 2025, the TTF has recorded 213 filings. The proposal seeks to provide a regulatory framework that could lower compliance costs for token projects while enhancing consistency in disclosures for investors.
Key questions remain regarding the qualifications for QODAs, the scope of disclosures, and the timeline for the SEC's decision-making process on these proposals.
FAQ
What is the purpose of Blockworks' comment letter to the SEC?
Blockworks' comment letter aims to advocate for changes to the SEC's proposed Regulation Crypto Assets, including allowing on-chain disclosures and creating a new regulatory category for Qualified Onchain Disclosure Agents.
What does the proposed Regulation Crypto Assets framework entail?
The proposed Regulation Crypto Assets framework outlines a regulatory approach for token offerings in the United States, focusing on transparency and disclosure requirements for token projects.
What specific disclosures does Blockworks want to be mandated under the new regulations?
Blockworks requests that the regulations mandate disclosures related to market-maker agreements, liquidity arrangements, token loans, and payments to promoters.
What areas for improvement did the Hyperliquid Policy Center identify in the SEC's proposed framework?
The Hyperliquid Policy Center identified five areas for improvement, including clarifying token airdrop treatment, post-exempt distribution trading, safe harbor protections for matured projects, token buyback rules, and consistency in federal and state securities requirements.
Why are these proposed changes important for token developers and investors?
These proposed changes are important because they could significantly impact compliance costs and provide operational clarity for token developers and investors in the evolving crypto landscape.
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