DeFi Group Drops SEC Lawsuit Over Airdrop Regulation, Citing Industry Shift

ChainCatcher report, according to Cointelegraph, the Texas-based apparel company Beba and the crypto lobbying group DeFi Education Fund have voluntarily dismissed their 2024 lawsuit against the U.S. SEC. The lawsuit challenged the SEC’s regulatory approach to airdrops, alleging that it implemented digital asset enforcement policies without following formal rulemaking procedures, in violation of the Administrative Procedure Act. The voluntary dismissal filing cited the work of the SEC’s Crypto Task Force and multiple speeches by Commissioner Hester Peirce last year, in which Peirce suggested that airdropped tokens do not constitute securities and noted that the SEC is considering establishing an exemption framework for airdrops, as well as the White House’s January administrative action encouraging the SEC to create a “safe harbor” for specific airdrops. The DeFi Education Fund stated that, given the work of the SEC’s Crypto Task Force and recent statements indicating a potential shift in the Commission’s stance on free airdrops, continuing the litigation is no longer necessary. The dismissal is without prejudice, preserving the right to refile in the future.