Regulations in the crypto space have both positive and negative reactions from the community. Some feel that relying on governments for regulation is what ruined the financial system to begin with while others believe that there is no future in crypto without proper communication with the existing channels.
To combat the unregulated and easily manipulated nature of ICOs the SEC has offered their own rendition for opening a US based blockchain company known as Security Token Offerings or STOs.
STOs have the chance to overtake the popularity of ICOs as they offer more protection of investors funds especially from scam companies. It won't be easy for frivolous companies to get an STO so if they have one they had to prove themselves.
A popular marketing tool in the crypto space has been airdropping tokens to the early birds in order to create buzz and talk about the project. Though much isn't known now about how the SEC feels or the direction they will go with airdrops one thing is apparent: Airdrops are not compliant.
What this means for their future is unclear. A company can't just send shares of stock to people thus making airdrops incongruent with US security laws. Since airdrops will likely be regarded as security transactions what is to come of the problematic scenario they present?
