According to The Block , House Financial Services Committee Chairman Patrick McHenry of North Carolina and House Majority Whip Tom Emmer of Minnesota asked the U.S. Securities and Exchange Commission (SEC) in a letter sent to SEC Chairman Gary Gensler on Tuesday. ) gave a clear explanation of its stance on cryptocurrency airdrops, while accusing the SEC of “pushing pressure on the balance of justice.” In their letter they wrote:
"By creating a hostile regulatory environment, including issuing statements on airdrops and increasing warnings of enforcement actions in various cases, the SEC is applying pressure to prevent American citizens from participating in shaping the next generation of the Internet."
Lawmakers cited past cases of the SEC handling airdrops, including the agency’s case against Tron founder Justin Sun The SEC said in a footnote to its 2019 “Analytical Framework for Digital Asset “Investment Contracts”” that airdrops may be considered a “sale or distribution of securities.” Tom Emmer and Patrick McHenry said developers were therefore forced to prevent Americans from receiving cryptocurrencies via airdrops. Two Republicans wrote in the letter:
“By banning Americans from participating in airdrops, the SEC is preventing crypto users from fully experiencing the benefits of blockchain technology.”
The pair asked Gensler a series of questions, including how the agency differentiates airdrops from airline miles or credit card points. They said they hope to receive a response from Gary Gensler by September 30.
Tom Emmer and Patrick McHenry have been critical of Gary Gensler’s approach to cryptocurrency regulation for years. Gary Gensler has claimed that most cryptocurrencies are securities and called on cryptocurrency platforms to register with the SEC. Meanwhile, Tom Emmer and Patrick McHenry led the House of Representatives in pushing for passage of a cryptocurrency market structure bill that would divide jurisdiction over cryptocurrency to the SEC and give new jurisdiction to the Commodity Futures Trading Commission.
The House Financial Services Committee plans to hold multiple hearings in the coming week focusing on the SEC and cryptocurrency. On Wednesday, lawmakers will hold a hearing titled “Dazed and Confused: Analyzing the SEC’s Politicized Treatment of Digital Assets” and another hearing on SEC oversight next week.
