The encryption lobbying group has submitted a brief to the court in support of the lawsuit against the SEC to clarify the Token Airdrop issue.

Odaily Planet Daily News, the encryption lobbying organization Blockchain Association and the Crypto Council for Innovation, submitted a ‘friend of the court’ brief in support of the ongoing lawsuit against the U.S. SEC, which aims to actively clarify the regulations related to Token Airdrops. These non-profit organizations argue that judges in the VeCo region should compel regulatory agencies to take action in response to claims by the US clothing brand Beba and the Decentralized Finance education fund that the Airdrop rewards to shoppers with issuanceTokens do not violate securities laws. In March of this year, Beba and the Decentralized Finance Education Fund sued the SEC, claiming that Token Airdrops cannot violate the so-called Howey Test, in part because there is no reasonable expectation of profits. “The first step in the Howey test by the Supreme Court is to determine whether a particular tool is an ‘investment contract’, so the court needs to recognize the existence of ‘monetary investment’. In Airdrop, there is no monetary investment because the recipient usually receives Tokens for free,” lawyers from the Blockchain Association and Cryptocurrency Committee wrote in their amicus brief. (The Block)