Crypto Airdrops Under Scrutiny

Two US Republican lawmakers, Tom Emmer and Patrick McHenry, have sent a letter to SEC chair Gary Gensler demanding answers on the agency's approach to crypto airdrops. They express concerns that the SEC's actions could stifle the growth of decentralized blockchain technology.

SEC's Stance on Crypto Airdrops

The lawmakers point to recent SEC lawsuits against Hydrogen Technology Corporation and Justin Sun's firms, where the regulator classified airdropped tokens as "unregistered offers and sales of securities." They fear this could have a negative impact on the development of on-chain applications and economic growth.

Calls for Regulatory Clarity

Emmer and McHenry have given Gensler until the end of September to respond to five questions related to how the SEC determines if airdropped tokens fall under the Howey test for securities and how the regulator distinguishes airdrops from other reward programs. They argue that prohibiting Americans from participating in airdrops would prevent them from fully realizing the benefits of blockchain technology.

Concerns Over Decentralization

The lawmakers express their belief that the SEC is "scared to death of decentralization" as it goes against the principles the country was built on, "by the people from the ground up." They see the regulator's actions as an attempt to maintain control and stifle the growth of decentralized finance.

Broader Implications

The outcome of this exchange between the lawmakers and the SEC could have far-reaching implications for the future of the crypto ecosystem and the ability of users to participate in airdrops, which are a key feature of decentralized applications.

Source: https://cointelegraph.com/news/republicans-demand-sec-gary-gensler-clarify-crypto-airdrops

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