DeFi lobbying groups dropped their airdrop lawsuit against the U.S. SEC, citing a change in the crypto industry landscape.

PANews reported on March 17 that, according to Cointelegraph, Texas-based apparel company Beba and crypto lobbying group DeFi Education Fund have voluntarily withdrawn their 2024 lawsuit against the U.S. Securities and Exchange Commission (SEC). The lawsuit targeted the SEC's regulatory approach to airdrops, accusing it of violating the Administrative Procedure Act by enforcing digital asset policies without a formal rule-making process.

The voluntary withdrawal document cited the work of the SEC's Crypto Task Force and several speeches by Commissioner Hester Peirce last year. Peirce implied that airdropped tokens are not securities and mentioned that the SEC is considering establishing an exemption framework for airdrops, as well as the White House's January executive action encouraging the SEC to create "safe harbors" for certain airdrops. The DeFi Education Fund stated that given the work of the SEC's Crypto Task Force and recent speeches suggesting a possible shift in the Commission's stance on free airdrops, continuing the litigation is no longer necessary. The withdrawal is an unbiased dismissal, reserving the right to revise the lawsuit in the future.