US Crypto Clampdown: Billions in Airdrop Profits Lost
by aria-crypto.com
March 12, 2025 at 12:07
US Crypto Clampdown: Billions in Airdrop Profits Lost
US crypto investors have missed out on between $1.84 billion to $2.64 billion in airdrop profits from 2020 to 2024 due to stringent regulations and geoblocking, according to a new report by DragonFly. The US government has foregone an estimated $525 million to $1.38 billion in potential tax revenues from these airdrops. These missed revenues could have been significantly higher, considering corporate tax losses from cryptocurrency firms operating offshore, such as Tether, which alone could contribute approximately $1.6 billion annually in taxes if based in the US.
Experts argue that current regulations, which misclassify community-focused airdrops as investment offerings, restrict broader adoption and innovation within the sector. Clear and protective 'safe harbor' rules recommended for airdrops include disclosures of tokenomics, strict anti-fraud regulations, and ensuring real-world utility of tokens at launch. Despite these challenges, continued offshore movement by crypto firms and the use of VPNs by traders to access airdrops pose compliance and legal risks, underscoring the need for regulatory clarity to maintain the US's competitive position in the global digital economy.
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