US Crypto Regulations Cost Residents $2.6 Billion in Airdrop Gains

In Brief:

US residents lost up to $2.6 billion in potential airdrop income due to strict regulations.

The US government missed out on $1.4 billion in tax revenue.

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A report from venture capital firm Dragonfly reveals that between 2020 and 2024, US cryptocurrency regulations have caused residents to miss out on $1.84 billion to $2.64 billion in potential airdrop earnings. Geo-blocking measures, which restrict US users from participating in certain token distributions, have led to an estimated 5.2 million US-based crypto users being excluded from major airdrop opportunities.

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Beyond individual losses, the US government has also suffered financially. The report estimates that $1.4 billion in potential tax revenue was lost due to these restrictions. Given that nearly 25% of the world’s active crypto addresses belong to US residents, the exclusion from airdrop events has significantly impacted both retail investors and the country’s overall crypto economy.

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The findings highlight growing concerns that excessive regulation is pushing crypto innovation offshore, limiting financial opportunities for American investors while benefiting users in less restrictive jurisdictions.

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