ConsenSys has sued the SEC, claiming that the SEC has exceeded its authority over Ethereum.
The lawsuit seeks confirmation that #ETH , Ethereum's currency, is not a security.
ConsenSys argues that treating ETH as a security violates the Fifth Amendment to the Constitution and the Administrative Procedure Act.
The company attempts to defend MetaMask's business by arguing that MetaMask is not a broker and that its services do not violate securities laws.
Consensys has formally challenged the SEC by filing a lawsuit. In their lawsuit, they accuse the SEC of an unlawful power grab over #binance . This is not just a dispute on a technicality, but a full-blown battle to free Ethereum from the clutches of security tokens.
From their bustling technology center in Fort Worth, Texas, ConsenSys is speaking not only on their own behalf, but on behalf of the entire Ethereum community. They are asking the Federal Court to clarify this situation once and for all. ETH is not a security, and treating it as such tramples on their Fifth Amendment rights and violates the Administrative Procedure Act.
They also want the SEC to clarify that their MetaMask wallet is not a broker and that their betting service does not violate the Securities Act. They also insist that the SEC stop investigating MetaMask's swapping and betting functions.
A deeper look into the substance of the lawsuit shows that Consensys isn't just throwing punches for fun. If the SEC gets its way, there will be serious consequences. If the SEC overreaches and starts regulating Ether as a security, it could stifle innovation and use of Ethereum in the U. S. , effectively putting a huge damper on technological development. The assets of hundreds of millions of Ethereum holders could plummet, and the entire #blockchain landscape in the U. S. could face a cold winter.
Joe Rubin, one of the creators of Ethereum and head of Consensys, spares no words.
The stakes.
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