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Republicans Demand SEC Clarifications: Who Is Hindering Crypto Innovation?
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Republicans Demand SEC Clarifications on Crypto Airdrops

Sep 18, 2024
  1. SEC Targets Crypto Airdrop Market
  2. Americans Could Miss Out On The Next Internet Phase
  3. Issue with Decentralization

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.

SEC Targets Crypto Airdrop Market

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 letter dated September 17. The SEC has a track record of targeting crypto firms involved in airdrops, including a 2022 lawsuit against Hydrogen Technology Corporation for distributing unregistered securities through an airdrop. In the same year, the regulator sued Tron founder Justin Sun and other crypto firms for illegally selling BitTorrent (BTT) through monthly airdrops to investors.

Americans Could Miss Out On The Next Internet Phase

McHenry and Emmer argue that by ‘prohibiting Americans from participating in airdrops,’ the SEC is preventing American crypto users from realizing the full potential of blockchain technology. They stated that 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.’

Issue with Decentralization

Emmer also mentioned in a post on X that the SEC and anti-crypto politicians like Elizabeth Warren are ‘scared to death of decentralization,’ because it restores American citizens’ power to build the nation ‘from the ground up.’

They are scared to death of decentralization because it restores what this country was built on, which is by the people from the ground up.Tom Emmer

The Republicans' demands highlight the urgent need for SEC clarifications to provide clear rules for the crypto industry and support innovation in the US.

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