DeFi Fund, Beba Dismiss SEC Airdrop Lawsuit

The DeFi Education Fund and Texas-based apparel company Beba voluntarily dismissed their 2024 lawsuit against the U.S. Securities and Exchange Commission on Friday in the U.S. District Court for the Western District of Texas, citing recent regulatory signals that suggest a softening stance on cryptocurrency airdrops.

The lawsuit, filed earlier in 2024 as a pre-enforcement challenge, accused the SEC of developing its digital asset enforcement policies without following the formal notice-and-comment rulemaking process required by the Administrative Procedure Act. Beba had launched a free token airdrop in March 2024, prompting the legal action alongside the DeFi Education Fund, a cryptocurrency advocacy group. The plaintiffs sought court clarification on whether freely distributed tokens qualify as securities under federal law, arguing that the SEC's approach created uncertainty for projects planning such distributions.

The dismissal was filed without prejudice, allowing the plaintiffs to refile their claims if future guidance from the SEC proves insufficient. In court documents, their lawyers highlighted ongoing work by the SEC's Crypto Task Force, which is expected to address...