Crypto companies are clashing with the US Securities and Exchange Commission (SEC) over how airdrops should be regulated.
The Fight Over Airdrops
A group of crypto companies, including Beba and the DeFi Education Fund, are suing the SEC to get clarity on how airdrops fit into US securities laws. They argue that airdrops are not investments because people get tokens for free, not to make money.
Lobbying Groups Join the Fight
The Blockchain Association and the Crypto Council for Innovation, two major crypto lobbying groups, are backing Beba in this lawsuit. They say the SEC is overstepping its authority by trying to regulate airdrops as securities.
SEC’s Stance
The SEC, however, is sticking to its guns. They believe they have the power to regulate crypto assets, including airdrops, as securities. They have already tried to dismiss the lawsuit.
Concerns About Regulatory Uncertainty
The SEC’s approach has caused a lot of uncertainty in the crypto industry. Many companies are worried about the lack of clear rules and are reconsidering their operations in the US.
Crypto Groups Push for Clarity
The Blockchain Association and the Crypto Council are urging the court to reject the SEC’s dismissal motion. They want the court to force the SEC to provide clear rules for airdrops, so that the US crypto industry can continue to innovate.
