House Republicans Challenge SEC's Stance on Crypto Airdrops

Reps. Emmer and McHenry demand clarity from SEC Chair Gary Gensler on whether airdropped tokens are classified as securities under current laws.

Reps. Tom Emmer and Patrick McHenry sent a letter to SEC Chair Gary Gensler questioning the application of securities laws to crypto airdrops.
The lawmakers argue that airdrops are crucial for the development and decentralization of blockchain networks and should not be treated as securities.
The SEC has previously suggested that airdrops could be classified as securities if they create a public trading market, even without monetary transactions.
Emmer and McHenry's letter highlights the lack of a clear regulatory framework, which they claim restricts Americans from participating in blockchain innovations.
The letter asks the SEC to clarify its stance by September 30 and to explain the difference in treatment between airdrops and other reward programs like airline miles.