Crypto’s Counteroffensive Suits Underscore Need for Regulation

The plaintiffs seek declaratory and injunctive relief in the complaints filed in the Texas federal courts by Lejilex and Crypto Freedom Alliance of Texas and by Beba LLC and DeFi Education Fund. Lejilex describes itself as “a non-custodial digital asset trading platform that allows users to trade digital assets through the use of underlying smart contracts” in “blind bid/ask transactions.”

It seeks to avoid being required to register “as a securities exchange, broker, or clearing agency.” And the complaint in Beba LLC describes the lead plaintiff as a small online apparel company that has “incorporated digital assets into its business” and distributed its BEBA token for free via an airdrop.

That complaint alleges the SEC “will take the position that BEBA tokens are investment contracts and that the airdrop is a securities transaction.” Both complaints argue the SEC lacks jurisdiction to undertake enforcement action against them.

Source: Crypto’s Counteroffensive Suits Underscore Need for Regulation