The DeFi Education Fund and apparel company Beba had just filed a complaint against the Securities and Exchange Commission (SEC) on which the judge of the federal district court had already issued an order of arrest. They aim to have their $BEBA token distribution considered non-security in order to seek the APA enforcement of SEC’s rulings.
According to the complainant, the $BEBA token is not an investment contract or security since it can be redeemed for specific products from Beba’s online store. According to Beba, airdrops can’t be considered securities because they are free. However, there are no shared intentions between Beba and recipients, and the token holders won’t resort to other people’s actions to earn money.
In addition, the complainant claims that the SEC has not sought public opinion when deciding whether the digital assets are securities or not, which is against the APA.
The complainant argued that SEC enforcement proceedings involved insufficient analysis and that the initiative impacting the industry and the public did not undergo any process of commenting. The SEC has 60 days to react to the claim, which will be followed by further notice and order.
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