Crypto Advocates Stand Up in a Case Against the SEC
The Blockchain Association and the Crypto Council, two organizations dedicated to crypto advocacy, stepped up to support Beba and the DeFi Education Fund in a lawsuit against the US SEC (Securities and Exchange Commission).
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The Blockchain Association and the Crypto Council, two organizations dedicated to crypto advocacy, stepped up to support Beba and the DeFi Education Fund in a lawsuit against the US SEC (Securities and Exchange Commission).
The subject of the lawsuit is a token airdrop by the clothing brand to shoppers. In February 2024, the SEC announced stricter rules for DeFi and token airdrops, which saw pushback from the crypto community.
In March, Beba and the DeFi Education Fund sued the SEC for violating the law and asked the court to declare that $BEBA tokens are not securities.
By filing an amicus brief, the Blockchain Association and Crypto Council expressed their support for the plaintiffs and a strong interest in the case. In the 30-page document, the organizations state that airdrops should not be considered investment contracts.
They mentioned that airdrops are common mechanisms to raise awareness for a new digital asset project where recipients usually receive tokens for free. Therefore, the SEC’s position that airdrops are unregistered securities and represent investment contracts doesn’t correspond to the law.
According to the Blockchain Association and the Crypto Council, concerns around airdrops go beyond the Beba vs SEC case, as these events are an important part of blockchain.
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