The Pleasures Of Airdrops And Their Regulatory Risks

Positive and negative points also have their importance.

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🕒 12:56 AM

📅 Sep 27, 2025

✍️ By theLNS

Even with their enormous popularity, airdrops face a growing regulatory challenge.

How an airdrop is executed can be viewed by authorities such as the U.S. Securities and Exchange Commission, and like the distribution of a security, it is subject to strict laws that must be complied with.

The objective distinction between an airdrop as a "donation" for decentralization and an "offering" for investment is unclear in many jurisdictions, and the airdrop can be viewed as a way to distribute tokens in an early-stage market with the goal of indirectly raising funds. This appears to be a danger in the eyes of some, such as the SEC.

 And because of this, projects need to be extremely cautious today, seeking legal guidance and structuring their airdrops to avoid potential violations of securities laws, especially in countries with stricter regulations, as non-compliance can generate major problems that could be avoided.