GOP Lawmakers Demand SEC Clarity on Crypto Airdrops

Yesterday, House Financial Services Chair Patrick McHenry and Majority Whip Tom Emmer sent a letter to SEC Chair Gary Gensler seeking answers on the agency's stance regarding airdrops.

What's the Scoop?

• Distinguishing Airdrops: They want to know how the SEC distinguishes between crypto airdrops and other rewards programs like airline miles or credit card points.
• Regulatory Criticism: The letter criticizes the SEC’s approach, claiming it is preventing U.S. citizens from benefiting from blockchains.
• Deadline: Gensler has been asked to respond by September 30.

Bankless Take:

The ongoing pressure from Congress highlights growing frustration with the SEC’s handling of crypto regulation. Given the abundance of airdrops this cycle, it proves particularly important for the SEC to clarify their stance on airdrops, which, in 2019, they said could be considered a “sale or distribution securities.” Given their recent walkback about using securities as a “shorthand,” everything could be up in the air again. If the agency fails to provide clear guidance, developers may increasingly turn away from the U.S., opting for jurisdictions with more crypto-friendly regulatory environments. As the political climate continues to shift, this back-and-forth may further complicate efforts to establish a coherent regulatory framework for the digital asset industry.