Summary
TLDR: The crypto industry is suing the SEC preemptively to challenge its aggressive enforcement of securities law, specifically regarding airdrops like Beba’s BEBA token. The industry is shifting from a defensive to an offensive strategy, accusing the SEC of creating secret policies and violating the APA. This lawsuit follows a recent trend of proactive legal action against the SEC by prominent crypto companies. The industry believes that airdrops fall outside of the SEC’s jurisdiction based on the Howey Test, but may face challenges in proving APA violations.
Key Points
1. The crypto industry is taking a proactive approach by filing a pre-emptive lawsuit against the SEC to challenge its aggressive enforcement of securities law.
2. The lawsuit filed by the DeFi Education Fund (DEF) in Texas federal court aims to declare Beba’s airdrop of its BEBA crypto token as legal, potentially setting a precedent for similar actions in the future.
3. The crypto industry’s shift towards offensive legal action marks a departure from its previous defensive stance against SEC lawsuits, with companies now challenging the SEC’s authority and policies regarding cryptocurrencies.