Republicans Ask US SEC for a Clear Stance on Crypto Airdrops

Republican policy makers have asked the U.S. Securities and Exchange Commission(SEC) for a clear stance on crypto airdrops in a letter sent to Chair Gary Gensler.

In the letter, House Financial Services Committee Chair Patrick McHenry of North Carolina and House Majority Whip Tom Emmer of Minnesota have argued, “By creating a hostile regulatory environment, including making assertions about airdrops in various cases and increasing warnings for additional enforcement actions, the SEC is putting its thumb on the scale and precluding American citizens from shaping the next iteration of the internet.”

The future of the peer-to-peer digital economy cannot be left to the authoritarian whims of @GaryGensler.

Today, @PatrickMcHenry and I are requesting answers from the SEC on their position that airdrops are securities transactions. pic.twitter.com/UFm7ymdEaj

— Tom Emmer (@GOPMajorityWhip) September 17, 2024

McHenry and Emmer have pinpointed cases where the SEC has called airdrops as “sale or distribution of securities” in a footnote in its 2019 “Framework for ‘Investment Contract’ Analysis of Digital Assets.” They have also especially cited SEC’s case against Tron founder, Justin Sun with regards to airdrop. The duo has accused SEC of forcing to ‘block Americans’ from receiving crypto in an airdrop and thus realizing the benefits of blockchain technology.

Asking how SEC plans to distinguish airdrops from airline miles or credit card points, they have sought a response from Gensler by Sept. 30.

The House Financial Services Committee is planning to hold hearings on ‘SEC and crypto’ over the next week with a hearing titled “Dazed and Confused: Breaking Down the SEC’s Politicized Approach to Digital Assets” on Wednesday.

Also Read: SEC Political Crypto Bias Hearing September 18: What To Expect?