The SEC charges Consensys for allegedly violating the securities laws.
Reportedly, Consensys failed to register as a broker through its MetaMask swaps service.
MetaLawMan addresses the lawsuit as a mirror image of the Consensysâ complaint against the SEC.
The Securities and Exchange Commission has filed a lawsuit against ConsenSys, the software company behind the popular MetaMask wallet, alleging the firm violated securities laws by operating as an unregistered broker and offering unregistered securities through its staking programs, MetaMask swaps service.
MetaLawMan, a data and legal expert, took to X (formerly Twitter) to comment on the SECâs action. He characterized the SECâs complaint as a âmirror image of the case ConsenSys filed against the SEC in Texas.â
Full complaint here.https://t.co/5bkZHSCtxo
â MetaLawMan (@MetaLawMan) June 28, 2024
In its lawsuit against the SEC, ConsenSys emphasized the importance of Ethereum and criticized the agencyâs regulatory overreach. The crypto firm argued against the SECâs attempt to classify Ether as a security, highlighting how the regulatorsâ âreckless approachâ is disrupting the crypto ecosystem.
In a move that some see as retaliation for ConsenSysâs earlier lawsuit against the agency, the SEC filed the latest complaint in the U.S. District Court in Brooklyn, New York, accusing ConsenSys of offering unregistered securities through its crypto staking programs, generating over $250 million in fees through this activity.
Earlier this month, ConsenSys declared a major win with the SECâs decision to end its investigation into Ethereum. The platform wrote, âThe Enforcement Division of the SEC responded by notifying us that it is closing its investigation into Ethereum 2.0 and will not pursue an enforcement action against ConsenSys.â Despite this earlier victory for ConsenSys, tensions between the two remained high as evidenced by the latest SEC lawsuit.
ConsenSys asserted that the platformâs fight against the SECâs regulatory overreach will continue despite this development. While the end of the Ethereum investigation offered a brief respite, the SECâs lawsuit against ConsenSys underscores the ongoing regulatory challenges facing the crypto industry. Industry participants are taking a close watch as the outcome could have far-reaching implications for the future of crypto regulation in the United States.
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