Published on september 19, 2024, 12:22 am
Image source: Fox News
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US Representatives Tom Emmer and Patrick McHenry are pressing Gary Gensler, the Chair of the United States Securities and Exchange Commission (SEC), to provide answers regarding the SEC’s stance on crypto airdrops before the end of this month. In a letter dated September 17, the lawmakers expressed their apprehensions following the SEC’s statements on airdrops in various legal cases over the past couple of years.
The recent legal actions by the SEC against Hydrogen Technology Corporation and Justin Sun brought into question the classification of crypto airdrops as “unregistered offers and sales of securities.” Emmer and McHenry emphasized their worries about potential misconceptions in applying securities regulations that could hinder blockchain technology from realizing its full decentralized potential.
The lawmakers submitted five crucial questions to Gensler, demanding clarity on how free crypto distributions align with regulatory standards such as the Howey test, distinguishing airdrops from other forms of rewards like credit card points, and evaluating the broader effects on onchain applications, economic growth, and tax revenues if airdropped tokens were considered securities.
Emphasizing that restricting Americans from participating in airdrops limits their exposure to blockchain advantages, Emmer and McHenry underscored concerns about ensuring American crypto users can fully embrace blockchain technology without unnecessary regulatory constraints.
This latest move by Emmer and McHenry marks another instance where Republican legislators have directed scrutiny toward Gensler’s leadership at the SEC. The previous week saw several GOP members questioning Gensler about potential political influences affecting hiring practices within the agency.
As these developments unfold at the intersection of cryptocurrency regulation and political oversight, stakeholders await further responses from Gensler and ongoing debates surrounding decentralization, regulatory clarity for cryptocurrencies, and potential implications for market participants.
Original article posted by Fox News
