The legal battle between ConsenSys and the United States Securities and Exchange Commission (SEC) has escalated with the recent lawsuit filed by the blockchain technology company. ConsenSys argues that the SEC is exceeding its prerogatives by trying to regulate Ethereum, the world's second-largest cryptocurrency, as a security.
Based in Fort Worth, Texas, ConsenSys is positioning itself as the voice of the Ethereum community by asking a federal court to declare that Ethereum (ETH) is not a security. The company claims that such a classification would violate Fifth Amendment rights and be contrary to the Administrative Procedures Act. “ETH is not a security, and treating it as such would trample your Fifth Amendment rights and disrupt the Administrative Procedures Act,” the company argues.
Furthermore, ConsenSys emphasizes that its MetaMask digital wallet should not be considered a broker, and that its trading operations staking do not violate any securities laws. The company is pushing for the SEC Please give up your attempts to regulate swap and staking operations through MetaMask.
Today, Consensys took an important step towards preserving access to ether and by extending the Ethereum blockchain in the US We are suing the SEC and fighting back against its overzealous regulatory overreach. You can find more of my thoughts here: https://t.co/VmvOsrCxjw... https://t.co/5IubZo69FW
—Joseph Lubin (@ethereumJoseph) April 25, 2024
The seriousness of the consequences of a possible SEC victory is fully discussed in ConsenSys' complaint. If Ether is regulated as a security, it could have a devastating impact on the innovation and utility of Ethereum in the United States, posing a major obstacle to technological advancement. According to ConsenSys, this could lead to a drastic depreciation for Ether holders and a prolonged “winter” for the Ether ecosystem. blockchain USA.
Joe Lubin, co-founder of Ethereum and leader of ConsenSys, was vocal about the goal of the process. “This process aims to keep the doors open for thousands of developers and market participants investing in Ethereum,” said Lubin, highlighting that Ether has been treated as a commodity, not a security.
ConsenSys is seeking judicial confirmation that the SEC has no authority over Ether, Ethereum-based user interfaces, or the blockchain itself. The company argues that Ether is vital for a wide range of non-financial applications in critical sectors such as healthcare and energy, and that excessive regulation could cripple developers in the United States.
By defending Ethereum in court, ConsenSys is not just fighting for legal classification; is championing the future of blockchain in the United States. “Suppressing Ethereum with outdated securities laws would not only stifle US innovation, but also leave the field open for other countries to jump ahead in the blockchain race,” emphasizes Lubin.
Furthermore, MetaMask seeks to empower users to access the web3 universe, from managing digital identities to carrying out cryptographic transactions, highlighting the essential role of developers who should not be labeled as securities brokers.
