Apparel company Beba and the DeFi Education Fund have voluntarily dismissed their 2024 lawsuit against the Securities and Exchange Commission (SEC) over airdrop regulations. The dismissal, filed without prejudice, cites recent regulatory shifts, including SEC commissioner statements suggesting airdropped tokens are not securities and the work of an SEC Crypto Task Force. The plaintiffs indicated they could refile if clear guidance does not materialize.
Beba and the DeFi Education Fund have withdrawn their pre-enforcement lawsuit against the SEC. The 2024 legal challenge alleged the regulator set digital asset enforcement policy improperly under the Administrative Procedure Act.
The voluntary dismissal was filed in a Texas federal court on Friday. It specifically references statements by Commissioner Hester Peirce and work by an internal SEC Crypto Task Force.
The court filing notes Peirce’s multiple speeches last year suggesting airdropped tokens are not securities. It also flags her May suggestion that the SEC is considering an exemption framework for airdrops.
In a statement, the DeFi Education Fund explained their reasoning for withdrawal. “Given the good work done by the SEC Crypto Task Force and recent speeches that suggest a change in the Commission’s position regarding free airdrops, we decided continuing was unnecessary for the time being,” the group stated.
The case was dismissed without prejudice, preserving the right to refile. Their lawyers wrote that they could refile if expected guidance fails to materialize or is insufficient.
Under former Chair Gary Gensler, the SEC faced criticism for policy-by-enforcement. Since his resignation in January 2025, the regulator has dismissed several crypto enforcement actions.
One recent dropped case was a two-year lawsuit against BitClout founder Nader Al-Naji. The SEC had alleged he raised over $257 million through token sales and spent more than $7 million on personal items.
