🌋 New Lawsuit Against the SEC Claims Airdrops Are Not Securities
posted 26 Mar 2024
The Texas-based clothing company Beba and the DeFi Education Fund (DEF) have filed a lawsuit to challenge the SEC's classification of airdropped BEBA tokens as investment contracts (securities).
Furthermore, they request the court to find the SEC guilty of breaching the Administrative Procedure Act (APA). The SEC is criticized for implementing a policy that treats almost all digital assets as investment contracts by default, and nearly all transactions involving them as securities dealings.
DEF and Beba highlight that BEBA tokens were provided for free, and airdrop recipients did not invest money. They contend that this scenario does not meet the criteria for an investment contract, citing the Howey Test's requirement for a financial investment.
This legal battle may set a significant precedent for future cases determining the status of airdropped tokens.
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