On March 25, 2024, DEF and Beba LLC, a Waco, Texas-based apparel company, sued the SEC, in the Western District of Texas, arguing that the agency unlawfully adopted its “nearly all tokens are securities” policy, which was never publicly defined yet wantonly enforced. The case challenges the SEC’s practice of regulating digital assets through enforcement and seeks a declaration that $BEBA token free airdrops are not securities transactions.
DEF joined Beba in asking the court to hold the SEC accountable to the APA’s rulemaking requirements and to recognize that applying securities laws to free token distributions is unlawful and chilling to innovation.
Status: Ongoing