Republican Lawmakers Demand SEC Clarify Stance On Crypto Airdrops, Warn Of Missed Opportunities For Americans
Republican lawmakers are pressing the US Securities and Exchange Commission (SEC) to clarify its stance on crypto airdrops by the end of the month, arguing that regulatory uncertainty is stifling innovation.
House Financial Services Committee Chairman Patrick McHenry and Representative Tom Emmer expressed concerns over SEC Chair Gary Gensler’s approach to crypto airdrops in a Sept. 17 letter .
“The SEC is putting its thumb on the scale and preventing American citizens from shaping the next iteration of the internet,” they wrote.
SEC Has Targeted Firms That Execute Airdrops
The SEC has a track record of targeting crypto firms involved in airdrops, including a 2022 lawsuit against Hydrogen Technology Corporation and its former CEO for allegedly distributing unregistered securities through an airdrop. This was after the firm minted 11 billion Hydro tokens as part of a fundraising initiative.
These past enforcement actions have added urgency to the lawmakers’ demand for clarity.
Tron founder Justin Sun and other crypto firms were also sued by the regulator in March 2023, and allegedly offered and sold BitTorrent (BTT) in “unregistered monthly airdrops to investors.”
Both of these cases were mentioned in the footnote of the letter addressed to Gensler.
Americans Could Miss Out On The Next Iteration Of The Internet
Emmer and McHenry said that by “prohibiting Americans from participating in airdrops,” the SEC is preventing American crypto users from realizing the full potential of blockchain technology.
The SEC’s approach under Gensler’s leadership “has only ensured that the next iteration of the internet is not designed by Americans or with American values,” the letter said.
Emmer also said in a Sept. 17 X post that the SEC and anti-crypto politicians such as Elizabeth Warren are “scared to death of decentralization,” because it restores American citizens’ power to build the nation “from the ground up.”
Related Articles:
- Upcoming Crypto Presales: Unlock Early Investment Opportunities!
- BlackRock’s Spot Bitcoin ETF Posts First Net Inflow In More Than 3 Weeks
- Cate Price Prediction: CATE Rebounds With 30% Pump As This PEPE 2.0 Presale Goes Parabolic
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
MARA's stock jumps after raising $1 billion via convertible notes to buy more bitcoin
MARA Holdings announced the successful closing of its $1 billion offering of 0% convertible senior notes due 2030.The bitcoin miner plans to allocate around $199 million of the proceeds to repurchase $212 million in principal of its existing convertible notes due 2026. The remaining funds will be used to acquire more bitcoin.
Gold loses luster as institutional demand fuels bitcoin price surge, analysts say
Bitcoin’s 46% surge over the past month, contrasted with gold’s 3% decline, highlights a shifting investor preference toward alternative store-of-value assets, analysts say.Derivatives traders are buying up bitcoin call options ahead of Trump’s inauguration, signaling strong bullish sentiment for the beginning of 2024.
SEC is 'engaging' Solana ETF applicants: report
SEC “engaging” on Solana ETF applications, sparking optimism for potential approval in 2025.VanEck, 21Shares, and Bitwise lead Solana ETF filings amid pro-crypto White House hopes.SOL token rises 4.6% to $247.91, bolstered by Solana’s strong DeFi ecosystem and demand.
Shiba Inu Developer Says SHIB Is No Longer a Memcoin