Consensys sues SEC, questions its approach to Ethereum and seeks judicial intervention
The blockchain and web3 development company behind the well-known MetaMask Wallet filed a lawsuit against the agency on Thursday in a Texas court.
âThe U.S. Securities and Exchange Commission⊠seeks to regulate ETH as a security, even though ETH has none of the attributes of a security, and even though the SEC has previously told the world that ETH is not a security, and is not within the statutory jurisdiction of the SEC," Consensys said in the complaint.
Consensys says the SEC has decided that ETH is a security and said the agency has "targeted" the company's Metamask software. The firm also noted in the complaint that SEC staff sent Consensys a Wells Notice earlier this month, that is, a formal notice that the agency plans to initiate enforcement action against them.
"The SEC claims that by offering this wallet software, Consensys acts as a broker and offers and sells securities. But MetaMask is simply an interface, like a web browser, that allows holders of digital assets to seamlessly interact with the Ethereum network, including all other users and applications participating in the network," Consensys said in the complaint.
Ultimately, Consensys is asking the court to declare that ETH is not a security and say that the SEC violated procedural laws.
