DeFi Education Fund Drops SEC Lawsuit as Crypto Stance Softens

Texas-based apparel company Beba and the DeFi Education Fund voluntarily withdrew a 2024 lawsuit challenging the U.S. Securities and Exchange Commission’s approach to airdrops. Beba launched a free token airdrop in March 2024 and, together with the DeFi Education Fund, filed a pre-enforcement challenge that year.

The suit argued the regulator had adopted a digital-asset enforcement policy without notice-and-comment rulemaking, violating the Administrative Procedure Act. The voluntary dismissal, filed Friday in the U.S. District Court for the Western District of Texas, cites work by the SEC Crypto Task Force and speeches by Commissioner Hester Peirce suggesting airdropped tokens are not securities.

United States, Texas

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