U.S crypto users miss out on $5B in airdrops – Is SEC’s clampdown to blame? – BitRss

• U.S. crypto users missed out on up to $5 billion in airdrops between 2020 and 2024 due to SEC-driven geofencing
• Lawmakers are urging the SEC to clarify its position on airdrops

Over the past four years, millions of U.S. crypto holders have found themselves unable to participate in major airdrops, missing out on an estimated $5 billion in potential earnings.

A recent study from venture capital firm Dragonfly revealed that geoblocking policies, implemented by crypto projects to avoid U.S regulatory scrutiny, were responsible for these losses​. These restrictions stem from ongoing legal uncertainty regarding whether airdropped tokens qualify as securities or not.

With the SEC also ramping up enforcement actions against crypto firms, many projects have taken a cautious approach by blocking U.S users outright. In fact, Dragonfly’s report estimated that between 1.84 million and 5.2 million active U.S users were affected by these restrictions in 2024 alone​.

However, the financial impact of these restrictions extended beyond just individual investors.

$1.4 billion in lost tax revenue

The report also found that by preventing U.S users from claiming airdrops, the government forfeited an estimated $1.4 billion in tax revenue between 2020 and 2024​.<…>