The DeFi Education Fund and Beba LLC, a Texas-based apparel company, have jointly filed a lawsuit against the US SEC to clarify the classification of airdrops as offerings that are not considered securities.

In the court filing on March 25, the emphasis was placed on the necessity to stop what the two entities view as the SEC's excessive regulatory measures infringing on the growing industry.

The DeFi Education Fund expressed:

"The crypto industry is under threat from a regulator that is overly aggressive, abusing its authority by focusing on our sector through continuous enforcement. It's time for the court to end this."

Subsequently, the legal action aims to procure a verdict from the Court stating that airdrop tokens are not securities and to prevent the SEC from taking further regulatory measures in the industry.

DeFi Education Fund's Chief Legal Officer, Amanda Tuminelli, revealed Beba's concerns regarding potential SEC scrutiny following the BEBA token airdrop.

To alleviate these concerns, Beba initiated legal proceedings to establish that the BEBA token airdrop does not involve securities, citing various reasons such as no financial investment, lack of mutual projects, absence of profit expectations through others' efforts, and no formal contracts or agreements.

The lawsuit highlighted:

"The BEBA token airdrops are without cost, there is no joint venture between Beba and token recipients, and there is no anticipation of profits based on external efforts."

Additionally, the legal action argues that the SEC, overseen by Gary Gensler, violated the Administrative Procedure Act (APA) by implementing a policy indicating that most digital assets act as investment contracts and most transactions with digital assets are considered securities transactions.

Tuminelli explained the consistent pattern in the SEC's enforcement actions in the burgeoning industry, criticizing the lack of clear guidelines provided and stating that the SEC's activities pose a significant risk.