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Legal Action Initiated Against SEC by DeFi Education Fund and Beba LLC
The DeFi Education Fund and Beba LLC have taken a crucial step in the legal arena by collectively filing a lawsuit against the US Securities and Exchange Commission (SEC). The primary objective of this legal move is to seek clarification on the categorization of airdrops as non-securities offerings within the cryptocurrency realm.
The court filing dated March 25 underpins the necessity to curb the regulatory activities undertaken by the SEC, which both entities view as an encroachment into the burgeoning cryptocurrency industry. The DeFi Education Fund articulated:
“The crypto industry is currently grappling with an existential threat posed by an excessively assertive regulator who is misusing its authority to target our domain through relentless enforcement measures. It is imperative for the court to intervene and put an end to this unwarranted interference.”
Consequently, the lawsuit has been formulated to secure a declaration from the Court affirming that airdropped tokens should not be considered as securities. Furthermore, it aims to restrain the SEC from embarking on any further enforcement actions within the sector.
Emphasizing the Free Nature of Airdrops
Amanda Tuminelli, the Chief Legal Officer at DeFi Education Fund, shed light on Beba’s concerns regarding possible SEC scrutiny surrounding its BEBA token airdrop initiative. In response to this apprehension, Beba has proactively initiated legal proceedings against the SEC to assert that the BEBA token airdrop does not fall under the securities category.
Beba has outlined several key arguments to support this stance, highlighting the absence of financial investment, the lack of a shared venture, the non-existence of a reasonable anticipation of profits, and the dearth of a contractual agreement or arrangement.
“The BEBA token airdrops are offered at no cost, there exists no mutual enterprise between Beba and the recipients of the tokens, and there is no justifiable expectation of gains based on the efforts of third parties.”
Allegations of APA Violations
Moreover, the lawsuit lodges an accusation against the Commission led by Gary Gensler, asserting that it violated the Administrative Procedure Act (APA) by instituting a policy that posited the majority of digital assets as investment agreements and characterized most digital asset transactions as securities dealings.
“The SEC’s enforcement endeavors, whether in the form of subpoenas, clandestine investigations, or complaints lodged in federal courts, are illegitimate and pose a dire threat to our future. These activities must be halted.” Image/Photo credit: source url
