Consensys files lawsuit against SEC regarding crackdown on Ethereum
Consensys, the developer behind MetaMask, has taken legal action against the U.S. Securities and Exchange Commission (SEC), challenging the agency’s classification of Ethereum (ETH) as a security. In a lawsuit filed with a Texas Federal Court, Consensys argues that the SEC’s attempt to expand its oversight to include Ethereum is illegal and will impede innovation in the cryptocurrency industry. The 34-page legal document, filed on April 25, claims that the SEC’s enforcement actions could undermine Congress’s efforts to establish stablecoin policies and hinder technological progress outside of the United States. Consensys describes the SEC’s regulatory overreach as counterproductive and beyond the agency’s original mandate. This lawsuit comes as the SEC intensifies its crackdown on the crypto industry and requests an additional $158 million to regulate the “wild west” digital asset market. The legal action by Consensys is also in response to a Wells Notice that was issued against the company earlier this month, suggesting that MetaMask may be operating as an unregistered broker-dealer. In addition to Consensys, other industry players, including Coinbase and Kraken, are challenging the SEC in court over allegations of federal violations. Critics of the SEC, such as Commissioner Hester Peirce, argue that the agency has failed to provide clear regulations for the emerging crypto market.
