Geoblocking has caused U.S. crypto users to potentially lose $2.64 billion between 2020 and 2024, affecting between 920,000 to 5.2 million users. The U.S. government also faced a tax revenue loss of approximately $1.38 billion due to these policies. Industry experts recommend clear regulatory frameworks to avoid future losses, with an optimistic outlook under current governmental support for cryptocurrency.
A recent report highlights significant financial losses for crypto users in the U.S. due to geoblocking policies during airdrop events. It is estimated that between 920,000 and 5.2 million U.S. crypto users were unable to access 11 major Ethereum-based airdrops between 2020 and 2024, resulting in a potential loss of $2.64 billion. Furthermore, the U.S. government faced a loss of about $1.38 billion in tax revenue from these incidents.
According to the 2025 State of Airdrops Report by Dragonfly, the total loss from airdrops could reach up to $5.02 billion when considering an additional 21 geoblocked airdrops investigated by CoinGecko. Globally, the 11 airdrops analysed distributed around $7.16 billion among 1.9 million users, with each address claiming an average of $4,600.
Geoblocking has not only affected individual users but also the tax revenues of the U.S. government. The report indicates that offshore operations of crypto companies significantly reduce federal tax income. For example, Tether, with reported profits of $6.2 billion in 2024, could have contributed $1.3 billion in federal corporate tax if not incorporated offshore.
To mitigate further losses, industry experts suggest moving away from current enforcement actions and adopting a more proactive approach towards airdrop regulation. This includes creating clear regulatory frameworks, ensuring tax clarity, and establishing registration pathways for users. Jessica Furr from Dragonfly emphasises that clarity around regulations can help avoid the confusion caused by geoblocking.
With President Trump advocating for a crypto-friendly environment, there is potential for developing effective regulations for the decentralised ecosystem, as he signed an executive order to initiate a national digital asset reserve. The information provided serves as an objective analysis of recent trends in the cryptocurrency landscape and should not be construed as financial advice. Readers are encouraged to verify details independently before making financial decisions.
