House Majority Whip Tom Emmer (R-MN) called for clarity on digital asset airdrops in a letter on Sept. 17, 2024, co-authored with House Financial Services Committee Chairman Patrick McHenry (R-NC). The letter, addressed to U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler, urged the agency to clarify its regulatory stance on airdrops.

Emmer criticized Gensler’s leadership, claiming that his handling of the SEC has stifled innovation and harmed U.S. competitiveness in the digital space. He stressed the need for clear and consistent rules to encourage growth and participation in blockchain technology. The lawmaker said: “Under Chairman Gensler’s tenure, the SEC has put its thumb on the scale and prevented Americans from shaping the next iteration of the internet.”

He highlighted the crucial role that airdrops play in blockchain engagement and network development, stating:

Airdrops play an important role in incentivizing participation in blockchain-based applications, which, in turn, contribute to the continued development, initial governance, and ultimate decentralization of these networks.

The lack of regulatory clarity has forced many developers to block Americans from participating in airdrops, even if they contributed to the project. Emmer expressed concern that SEC policies are preventing U.S. engagement in these projects, which could lead to diminished American influence in shaping the future of blockchain technology. He stressed:

Chairman Gensler’s tenure at the SEC has been characterized by regulation by enforcement and has resulted in widespread uncertainty and fewer opportunities for Americans.

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