US House Leaders Accuse SEC of "Manipulation" Over Crypto Airdrops

House Financial Services Committee Chairman Patrick McHenry and Majority Whip Tom Emmer sent a letter to SEC Chairman Gary Gensler on Tuesday, accusing the agency of "manipulation" and urging it to clarify its stance on cryptocurrency airdrops.

The letter states that "by creating a hostile regulatory environment, including making 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 the SEC's approach to airdrops in cases like the one against Tron founder Justin Sun. The agency, in its 2019 "Framework for ‘Investment Contract’ Analysis of Digital Assets," suggested that airdrops could be considered "the sale or distribution of securities."

Emmer and McHenry argued that developers are "forced to prevent Americans" from receiving crypto in airdrops. They wrote: "By prohibiting Americans from participating in airdrops, the SEC is preventing cryptocurrency users from fully realizing the benefits of blockchain technology."

The two lawmakers posed a series of questions to Gensler, including how the agency plans to differentiate airdrops from airline miles or credit card points. They requested a response from Gensler by September 30.