Key Takeaways
- • Hawkeye Digital, Inc. (OTC: HWKE) submitted a comment letter to the SEC supporting the proposed "Regulation Crypto Assets" (File No. S7-2026-27), which would create new offering exemptions and a safe harbor for crypto assets.
- • The letter recommends raising the startup exemption's offering limit from $5 million to $10 million, arguing legal and licensing costs can consume much of the current limit.
- • Hawkeye asks the SEC to define the factors separating administrative and ministerial functions from "essential managerial efforts," a distinction it says will matter for issuers relying on the safe harbor.
- • The company also urges the SEC to cite existing third-party code audits as an example of required security disclosure and to let Tier 1 fundraising-exemption offerings proceed on a filing basis without SEC qualification.
Summary
Hawkeye Digital, Inc. (OTC: HWKE), a publicly traded private equity and merchant banking platform focused on the digital economy, has submitted a comment letter to the U.S. Securities and Exchange Commission regarding the agency's proposed rules titled "Regulation Crypto Assets" (File No. S7-2026-27). Hawkeye expressed support for the proposal, which would establish new offering exemptions and a safe harbor for crypto asset issuers.
The letter recommends four changes. First, it asks the Commission to state the factors that distinguish administrative and ministerial functions from "essential managerial efforts," which the company says will be important for issuers seeking to rely on the safe harbor. Second, it suggests citing existing third-party code audits as an example of the security disclosure the proposal requires. Third, it recommends raising the startup exemption's offering limit from $5 million to $10 million, noting that legal and licensing costs can consume much of the current limit. Fourth, it proposes permitting Tier 1 offerings under the fundraising exemption to proceed on a filing basis, without SEC qualification.
David Wachsman, President of Hawkeye, said the company "welcome[s] the SEC's proposal for a practical path to crypto asset offerings in the United States," and that the recommendations are intended to make the framework workable for early-stage companies, including those building regulated businesses around their tokens.
The letter will be available in the SEC's public comment file for Regulation Crypto Assets. Hawkeye states that its initial focus is the digital asset industry, with plans to expand into select high-growth sectors within financial services and advanced technology. The company's press release includes standard forward-looking statement cautions.
The letter recommends four changes. First, it asks the Commission to state the factors that distinguish administrative and ministerial functions from "essential managerial efforts," which the company says will be important for issuers seeking to rely on the safe harbor. Second, it suggests citing existing third-party code audits as an example of the security disclosure the proposal requires. Third, it recommends raising the startup exemption's offering limit from $5 million to $10 million, noting that legal and licensing costs can consume much of the current limit. Fourth, it proposes permitting Tier 1 offerings under the fundraising exemption to proceed on a filing basis, without SEC qualification.
David Wachsman, President of Hawkeye, said the company "welcome[s] the SEC's proposal for a practical path to crypto asset offerings in the United States," and that the recommendations are intended to make the framework workable for early-stage companies, including those building regulated businesses around their tokens.
The letter will be available in the SEC's public comment file for Regulation Crypto Assets. Hawkeye states that its initial focus is the digital asset industry, with plans to expand into select high-growth sectors within financial services and advanced technology. The company's press release includes standard forward-looking statement cautions.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.