A federal district court judge has already issued an arrest warrant in connection with a lawsuit filed by the fashion brand Beba and the DeFi Education Fund against the Securities and Exchange Commission. In order to obtain APA enforcement of SEC orders, they hope that their distribution of $BEBA coins is deemed non-security.
Furthermore, the complainant claims that the SEC violated the APA by failing to communicate with the public before evaluating whether or not the digital assets qualify as securities.
The case contends that because the $BEBA token can be used to purchase specific items from Beba’s online store, it is neither an investment contract nor a security. Beba believes that because airdrops are distributed for free, they cannot be classified as securities. However, beneficiaries and Beba do not share any mutually beneficial aims, and token holders will not profit from the actions of others.
The complainant claimed that the initiative affecting the public and industry did not go through a consultation period, and that the SEC enforcement actions lacked proper analysis. After the SEC replies to the claim, it will issue an additional notice and order, with sixty days to do so.
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