DeFi Education Fund and Texas apparel company Beba take SEC to court over 'regulating by enforcement' stance

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The DeFi Education Fund alongside a Texas-based apparel company called Beba are suing the Securities and Exchange Commission.

The DeFi Education Fund and apparel company Beba are suing the Securities and Exchange Commission, asking a Texas district court to declare that their $BEBA token airdrop is not a security and to enforce the Administrative Procedure Act on the SEC's rule-making process.

“The SEC’s unjust and ad-hoc enforcement campaign threatens businesses of all kinds, including companies like Beba who want to be able to use innovative technologies for legitimate business reasons,” said Miller Whitehouse-Levine, CEO of the DeFi Education Fund, in a statement. “Every single one of us in this industry, including the DeFi Education Fund, is harmed by their overreach. We are asking the court to put an end to the SEC’s arbitrary abuse of its authority.

"But the BEBA token airdrops are free, there is no common enterprise between Beba and token recipients, and there is no reasonable expectation of profits based on the efforts of others," they said.

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