SEC seeks to dismiss lawsuit against apparel companies Beba and DEF alleging their tokens are not securities

The U.S. Securities and Exchange Commission (SEC) is seeking to dismiss a lawsuit filed on March 25 by U.S. apparel company Beba and DeFi Education Fund (DEF), which asked a Waco District Court judge to rule that the eponymous tokens issued by Beba are not securities. However, the SEC argued that the lawsuit is "premature and premised on a (phantom) policy that does not currently exist." Beba's lawsuit claims that the SEC will find that BEBA tokens are securities and will sue the company because it "adopted a de facto rule without notice or comment that the 'vast majority' of digital assets 'are securities,'" citing Chairman Gary Gensler's 2022 remarks. In its motion to dismiss the lawsuit, the SEC said the lawsuit is "premature and based on a non-existent basis - a hypothetical policy that the SEC has never adopted and does not actually exist." The SEC said Beba and DEF have not identified "rules, orders, or other Commission actions that reflect the promulgation of the alleged policy." (Cointelegraph) In March, American clothing company Beba and DeFi Education Fund jointly filed a lawsuit against the U.S. Securities and Exchange Commission (SEC), questioning the SEC's consideration of digital assets as securities. Beba hopes to clarify whether its free token issuance meets the conditions for securities trading, aiming to protect its business from SEC enforcement actions. The case was filed in Texas, highlighting the need for a clear regulatory framework for the rapidly developing digital asset industry.