GOP Lawmakers Urge SEC to Clarify Crypto Airdrop Regulations

Become a part of our Telegram channel to receive the latest updates on breaking news

Republican legislators are urging the US Securities and Exchange Commission (SEC) to clarify its position regarding cryptocurrency airdrops by the end of this month, claiming that the lack of regulatory guidance is hindering innovation.

House Financial Services Committee Chairman Patrick McHenry and Representative Tom Emmer have raised concerns about SEC Chair Gary Gensler’s handling of crypto airdrops in a letter dated Sept. 17.

“The SEC is tipping the scales and preventing Americans from playing a role in crafting the next generation of the internet,” they stated.

SEC Has Set Its Sights on Airdrop-Executing Companies

The SEC has a history of pursuing crypto companies engaged in airdrops, including a lawsuit in 2022 against Hydrogen Technology Corporation and its former CEO for allegedly distributing unregistered securities through an airdrop. This action followed the firm’s creation of 11 billion Hydro tokens as part of a fundraising effort.

These previous enforcement actions have intensified the lawmakers’ call for clearer guidelines.

In March 2023, the regulator also sued Tron founder Justin Sun and several other crypto companies for allegedly offering and selling BitTorrent (BTT) in “unregistered monthly airdrops to investors.”

Both incidents were referenced in the footnote of the letter sent to Gensler.

Gary Gensler Named as Joe Biden's SEC Chair Pick

Americans May Miss Out on Future Internet Developments

Emmer and McHenry argued that by “preventing Americans from engaging in airdrops,” the SEC is obstructing American crypto users from unlocking the full capabilities of blockchain technology.

Under Gensler’s leadership, the SEC’s approach “has only guaranteed that the next phase of the internet is not crafted by Americans or in accordance with American values,” the letter noted.

They are terrified of decentralization because it reinstates what this nation was founded on, which is self-governance by the people. pic.twitter.com/0SgLMN4IBu

— Tom Emmer (@GOPMajorityWhip) September 17, 2024

Emmer also commented in a Sept. 17 X post that the SEC and anti-crypto politicians like Elizabeth Warren are “terrified of decentralization,” as it empowers American citizens to rebuild the nation “from the ground up.”

Most Searched Crypto Launch – Pepe Unchained