Two Republican Congressional Representatives are demanding clarity from the Securities and Exchange Commission about how regulators view airdrops. 

Reps. Tom Emmer and Patrick McHenry penned a letter to SEC Chair Gary Gensler Tuesday, expressing concern that regulators have “misapplied” securities laws to airdrops, a technology, they say, that plays a “crucial role in the development of a decentralized blockchain system.” 

Airdrops, which Emmer and McHenry define as digital assets that are distributed to early users of certain protocols, have, like many parts of the crypto industry, been in a regulatory gray area in recent years. 

In a 2018 enforcement action against Tomahawk…

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