ConsenSys Sues SEC To Maintain Crypto Freedom

Blockchain software company ConsenSys has taken the bold step of filing a lawsuit directly against the U.S. Securities and Exchange Commission and its five commissioners. The lawsuit aims to prevent the SEC from classifying Ethereum’s native cryptocurrency, Ether, as a security subject to regulatory oversight.

The lawsuit follows a Wells notice that ConsenSys received from the SEC on April 10. The notice accuses the company’s popular cryptocurrency wallet Metamask of operating as an unregistered broker, suggesting the SEC considers Ether trading to be a securities transaction that requires oversight. are doing. ConsenSys is seeking a declaratory judgment that Ether is not a security to protect itself from SEC investigation given its nature.

ConsenSys vs. SEC: Ethereum at risk

In the post, ConsenSys outlined two main reasons that motivated it to file the lawsuit. First, the company argues that the SEC is overreaching by potentially labeling Ether as a security, thereby improperly asserting jurisdiction over the entire Ethereum blockchain and the decentralized internet. Second, ConsenSys believes that the SEC is causing confusion through its inconsistent stance, negatively impacting Ethereum developers, users, companies, and nations around the world.

This post passionately describes Ethereum as a breakthrough technology that enables permissionless human ingenuity and innovation. This encourages others who have been harmed by the SEC’s actions to join the legal battle, highlighting that this lawsuit will protect the expanded decentralized protocol ecosystem. ConsenSys accuses the SEC of repeatedly self-contradicting itself by incorrectly characterizing blockchain as merely a risky investment scheme based on ideology.

The lawsuit has already garnered vocal support across the crypto industry. Coinbase’s chief legal officer publicly agrees that Ether should be treated as a commodity, not a security, and stands up to what he called the SEC’s unlawful overreach in the blockchain space. We would like to thank ConsenSys for their assistance.

As this high-stakes legal battle begins in federal court, ConsenSys could force judicial intervention to rein in the SEC’s efforts to expand regulatory authority over the rapidly evolving world of blockchain and cryptocurrencies. All eyes will be on whether or not. The outcome of this lawsuit could shape the entire future trajectory of decentralized finance and her Web3 development.

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