US lawmakers wrote to Gary Gensler, urging him to clarify how the SEC handles crypto airdrops

U.S. House Financial Services Committee Chairman Patrick McHenry and House Majority Whip Tom Emmer sent a letter to SEC Chairman Gary Gensler on Tuesday, accusing the agency of "manipulation" and urging it to clarify how it treats cryptocurrency airdrops. The letter stated that "by creating a hostile regulatory environment, including assertions about airdrops in various cases and issuing increasing warnings of additional enforcement actions, the SEC is manipulating regulation to prevent American citizens from shaping the next generation of the Internet." The lawmakers cited cases where the SEC has addressed airdrop issues, including the case against Tron founder Justin Sun. The agency said in a footnote to its 2019 "Analysis Framework for 'Investment Contracts' of Digital Assets" that airdrops can be considered "sales or distributions of securities." Emmer and McHenry said developers were "forced to prevent Americans" from receiving cryptocurrencies in airdrops. "By prohibiting Americans from participating in airdrops, the SEC is preventing cryptocurrency users from fully realizing the benefits of blockchain technology," Emmer and McHenry wrote. The two asked Gensler a series of questions, including how the agency plans to distinguish airdrops from airline miles or credit card points. They said they hope Gensler will respond by September 30. (The Block)