The U.S. Securities and Exchange Commission (SEC) has filed a lawsuit against Consensys, the company behind MetaMask, accusing it of operating as an unregistered broker. The SEC alleges that Consensys has been conducting unregistered securities transactions since 2020, linked to MetaMask Swaps and Staking services.

Consensys is contesting these allegations, arguing that MetaMask should not be classified as a broker and its staking service did not violate federal securities laws. The company has also sought to declare ether (ETH) as not a security and to end the SEC’s investigation into Consensys.

The SEC claims that Consensys has collected over $250 million in fees from its unregistered activities. The SEC is seeking a permanent injunction and civil penalties against Consensys. The company, however, is fighting back, arguing that the SEC’s actions represent regulatory overreach.

This lawsuit is part of a broader crackdown by the SEC on the crypto industry. The outcome could have significant implications for the crypto industry, potentially setting a precedent for other crypto companies. The resolution of this case could shape the future of crypto regulation.