@frostfiresyntax

The U.S. SEC's stance on whether DeFi airdrops are securities hinges on the Howey Test, which assesses if there's an investment of money in a common enterprise with profit expectations from others' efforts. While no case definitively rules on DeFi airdrops, precedents offer clues. In the 2018 Tomahawk Exploration case, the SEC treated a "bounty program" (similar to an airdrop) as a securities offering, citing promotional value received. The ongoing Ripple Labs case also shows the SEC's broad approach to token distributions. Conversely, the Beba lawsuit challenges this, arguing airdrops lack investment. Thus, the SEC may view airdrops as securities if Howey criteria apply, but clarity awaits judicial rulings.

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