According to a report by venture capital firm Dragonfly, U.S. residents missed out on as much as $2.6 billion in potential revenue from geoblocked airdrops between 2020 and 2024 due to strict regulations. The SEC's enforcement tactics prompted crypto projects to geoblock U.S. users, which ultimately cost the government around $1.4 billion in potential tax revenue. The analysis evaluated 11 major airdrops that collectively generated over $7.16 billion, with U.S. users being deprived of the benefits. The average claim per eligible participant was around $4,562. With geo-restrictions affecting about 5.2 million users in the U.S., innovation in the crypto sector has faced significant challenges, pushing startups to seek opportunities abroad. The report emphasizes that regulatory uncertainty has resulted in a more cautious approach by firms, where geoblocking appears as a defensive measure against potential litigations. Dragonfly's findings highlight the significant economic impact of regulatory policies on individuals and the overall U.S. economy.

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