UNCHAINED: The SEC Thinks Crypto Airdrops Are Securities. Here's Why This Lawyer Thinks It's Wrong

Sep 20, 2024

Guest

Amanda Tuminelli

Amanda Tuminelli, a legal advocate at the DeFi Education Fund, joins Republican Congressmen Tom Emmer and Patrick McHenry to challenge the SEC's classification of crypto airdrops as securities. They argue that this interpretation misapplies the Howey test and complicates the regulatory landscape for billion-dollar airdrops. Tuminelli discusses ongoing legal battles surrounding airdrops, the SEC's shifting rhetoric, and the broader implications of these regulations on crypto innovation, emphasizing the need for clearer guidelines.

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Episode notes

Intro

00:00 • 2min

Debating SEC's View on Cryptocurrency Airdrops

01:56 • 3min

SEC's Stance on Crypto Airdrops

04:34 • 8min

Navigating SEC Regulations on Crypto Airdrops

12:51 • 2min

Shifting SEC Rhetoric on Crypto Classification

15:13 • 8min

Political Speculations and Weekly Crypto Recap

23:40 • 2min

Cryptocurrency Weekly Round-Up

26:04 • 10min

Congressmen Tom Emmer and Patrick McHenry sent the SEC a letter demanding clarification on how crypto airdrops are securities offerings. Amanda Tuminelli of the DeFi Education Fund breaks down why she thinks the SEC is wrong on its interpretation.

This week, Republican Representatives Tom Emmer and Patrick McHenry sent a letter pressing SEC Chair Gary Gensler for clarity on how securities laws apply to airdrops.

With billions of dollars worth of tokens airdropped this year alone, projects need clarity more than ever.

In this episode, Amanda Tuminelli, Chief Legal Officer of the DeFi Education Fund, dissects the SEC’s stance on airdrops, why her organization believes the SEC has stretched the legal definition of “compensation” too far, and what Congress might ask Gensler in his upcoming hearing.

Plus, she talks about how the SEC “regrets” any confusion it caused for using the term “crypto assets securities,” since the agency now admits that tokens themselves are not securities.

Show highlights:

Why Amanda believes the SEC’s position on airdrops doesn’t make sense
Why the DeFi Education Fund sued the SEC over the BEBA airdrop
How the SEC’s position on airdrops has been clear for a while, but is “wrong” according to Amanda
Her take on users bypassing the geographic restrictions to claim airdrops in the U.S.
How and why the SEC has changed its language around “crypto assets securities”
How the SEC’s new position on crypto assets implicating securities laws seems to rest on the “embodiment” theory
Why Amanda believes the Supreme Court or Congress may be needed to step in
What Amanda expects Congress to question Gary Gensler about in the hearing next week
Amanda’s takeaways from the first Congressional DeFi hearing last week
How she expects the presidential election will impact the regulatory landscape in the U.S.

Visit our website for breaking news, analysis, op-eds, articles to learn about crypto, and much more: unchainedcrypto.com

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Guest

Amanda Tuminelli, Chief legal officer of the DeFi Education Fund
Previous appearances on Unchained:
Gary Gensler’s Case Against Uniswap: Does the SEC Even Stand a Chance?
Is This the End of DeFi? Why the US Government Is Going After Tornado Cash

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