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The US Securities and Exchange Commission (SEC) has intensified its legal battle with the cryptocurrency industry by filing a lawsuit against ConsenSys, a… Blockchain company Known as metamask Wallet product and its focus on the Ethereum network.
The SEC alleges that ConsenSys violated federal securities laws by operating as an unregistered broker-dealer while offering “crypto-securities” services, collecting fees exceeding $250 million.
ConsenSys Sued by SEC
the Sued by the Securities and Exchange Commission The lawsuit against ConsenSys mirrors similar complaints against other crypto companies like Coinbase and Kraken. However, what sets this lawsuit apart is the context surrounding ConsenSys’ response to the SEC’s actions.
In April, ConsenSys filed a lawsuit v. Securities and Exchange Commission after receiving Wells Notice seeking clarification on whether Ethereum should be classified as a security. Recently, ConsenSys announced the closure of the SEC’s investigation into “Ethereum 2.0,” interpreting this as a signal that Ethereum falls outside the agency’s jurisdiction.
It is worth noting that the SEC did not list Ethereum as one of the unregistered securities ConsenSys filed in Friday’s filing, which could lead to consent From Ethereum ETF applications submitted by the world’s largest asset managers on May 23.
Regulatory Battle in the Cryptocurrency Industry
ConsenSys, founded by Joseph LubinConsenSys, an Ethereum developer, is setting itself apart from previous SEC targets. Rather than operating as an exchange, ConsenSys focuses on developing software, including the MetaMask digital wallet.
The SEC lawsuit alleges that the company violated securities laws by enabling the “swapping” of crypto assets through MetaMask. In particular, the agency targeted Ethereum Surveying ServicesLido and Rocket Pool, claiming that their tokens, stETH and rETH, respectively, are unregistered securities.
The SEC also alleges that ConsenSys facilitated more than 36 million crypto asset transactions, including at least 5 million transactions related to what the agency considers securities.
Previously, the Securities and Exchange Commission had brought Similar fees related to a seizure against Kraken, which resulted in a $30 million settlement, while Coinbase disputed the accusations.
While the new SEC complaint against the blockchain company does not classify Ethereum as a security, it represents another front in the SEC’s ongoing campaign against major players in the crypto industry.
Many within the cryptocurrency community may view this as a partial victory, given the absence of Ethereum being listed as a cryptocurrency. Unregistered securityHowever, the lawsuit further highlights the regulatory skepticism surrounding major companies in the industry.
ConsenSys, currently involved in an ongoing lawsuit against the Texas Securities and Exchange Commission, has criticized the agency’s actions, accusing it of pursuing an “anti-crypto agenda” through abusive enforcement actions and regulatory overreach.
At the time of writing, ETH is trading at $3,777, down 2.3% over the past 24 hours as the cryptocurrency market continues to face significant selling pressure.
Featured image of DALL-E, chart from TradingView.com
