Airdrops should get a ‘safe harbor’ from regulation, states a16z crypto head of policy

Ardrops must be “safe, legal and frequent”, the A16z policy chief, arguing for a safe harbor of the application of regulations.

The cryptographic industry is continuing its efforts for more favorable cryptography regulations. On Thursday April 10, Miles Jennings, Policy Head and Advocate General of the A16Z Crypto venture capital company, published a report plead for the relaxation of regulations Ardrops crypto.

Jennings criticized the regulatory approach lasts towards Airdrops by the American Securities Commission and Exchange under Gary Gensler. Due to regulatory problems, he noted, most projects have excluded Americans from their air props.

“Biden’s attack on the crypto has created perverse incentives that harm Americans.

A16Z offers a “safety port”

Ardrops are a method of distributing cryptographic tokens to holders. Some are distributed to reward commitment, and others serve as a marketing tool. However, because the dry under Gary Gensler considered most cryptographic assets as titles, his position on Airdrops has been largely negative.

According to the agency, Crypto Airdrops was equivalent to offers of unregistered securities, even if most Airdrops are actually free for beneficiaries. Jennings does not agree with this position, which suggests that paratroopers are essential for projects to reach decentralization.

“Paratroopers are not a” sale “. They are rather essential to allow blockchain projects to operate, but also allow them to achieve decentralization. »»

To remedy the current situation, Jennings offers five conditions that would allow an air card to be excluded from American securities laws. On the one hand, the Ardropped token should be a network token, which means that it deepens a decentralized blockchain – not a business. In addition, the blockchain network should already be operational.

Regarding distribution, it should be wide and fair, which means that it is not limited to private investors or venture capital. At the same time, the Airdrop must be free or based on the use of the past network. Finally, any part of the aerial platform allocated to the initiates must be locked for at least a year to prevent carpet prints.