Ethereum

United

Fortune

Status

<p>In a bold legal move, ConsenSys, a leading company in the Ethereum ecosystem, is taking on the SEC, accusing it of overstepping its regulatory powers. The stakes: determining whether the cryptocurrency Ether should be considered a security.</p>
<h2 id="h-consensys-takes-on-the-sec">ConsenSys Takes on the SEC</h2>
<p>The blockchain pioneer, ConsenSys has filed a 34-page lawsuit in a federal court in Texas, denouncing what it calls “illegal seizure of authority” by the SEC over Ethereum.</p>
<div class="my-4">
 <div class="ads " data-page-type="" data-location="1">
 </div>
</div>
<p>According to ConsenSys, the regulator’s efforts to assert jurisdiction over this smart contract blockchain threaten not only the company but also the entire crypto ecosystem.</p>
<p>As reported by Fortune Crypto, this action aims to prevent an imminent SEC lawsuit regarding MetaMask. It also demands a court decision affirming that ETH is not a financial security, contrary to the regulator’s assumed position.</p>
<p>For ConsenSys, the SEC’s attempts to extend its authority over Ethereum are illegal and threaten the entire blockchain ecosystem. “<em>Every ETH holder, including ConsenSys, would fear violating the securities laws if they were to transfer ETH across the network</em>,” the <a href="https://cryptobriefing.com/consensys-sues-sec-ethereum-not-security/" target="_blank" rel="noopener noreferrer nofollow">complaint</a> emphasizes, warning that such a situation “<em>would paralyze the use of the Ethereum blockchain in the United States</em>”.</p>
<h2 id="h-the-sec-goes-to-war">The SEC Goes to War</h2>
<p>This lawsuit comes in a tense context, as <a href="https://www.cointribune.com/en/bitcoin-after-the-green-light-from-the-etf-gary-gensler-stabs-us-in-the-back/" target="_blank" rel="noopener noreferrer nofollow">Gary Gensler</a>, the chairman of the SEC, intensifies his offensives against major players in the crypto assets industry. Companies like Uniswap Labs have thus been targeted by a spate of subpoenas.</p>
<p>Many experts criticize the SEC’s approach, deeming it opaque and unsuited to the specificities of blockchain technology.</p>
<p>The status of ETH is at the heart of the controversy. Previously, the SEC considered that Ethereum tokens, like Bitcoin, were not financial securities. However, according to Joe Lubin, founder of ConsenSys, the SEC would now attempt to use Ethereum staking as a precedent for continuing its crackdown on crypto assets.</p>
<p>The ConsenSys complaint reveals that the SEC issued a Wells notice in early April, threatening to sue over MetaMask’s role in the staking of ETH, a consensus mechanism introduced in September 2022.</p>
<p>This legal battle echoes ConsenSys’ efforts to promote the approval of an Ethereum spot ETF, highlighting the security and environmental advantages of Ethereum over Bitcoin. Nevertheless, the SEC has recently postponed its decision on the <a href="https://www.cointribune.com/en/crypto-sec-delays-decision-on-ethereum-spot-etfs/" target="_blank" rel="noopener noreferrer nofollow">Ethereum ETF proposals by Grayscale</a> and Franklin Templeton.</p>
<div class="my-4">
 <div class="ads " data-page-type="" data-location="2">
 </div>
</div>
<p>The outcome of this trial will have significant repercussions on the future of crypto regulation in the United States. A clarification of the legal framework is more necessary than ever to foster innovation and adoption of this disruptive technology.</p>

Crypto: ConsenSys Challenges the SEC to Defend Ethereum’s Status

Table of Contents

Cointribune EN

Other articles published on Apr 26, 2024

Vertex AI Price Forecast: Bitcoin Has 60% Chance Of Hitting $100,000, Key Predictions Unveiled

DOGE & LTC Investors Target DeeStream Presale for 100X Gains by December 2024

The impact of BRICS expansion on the global economy

Shiba Inu (SHIB) Burns Bright: Surge in Burn Rate Ignites Bullish Optimism in Crypto Market

Naira Speculation: Are Bybit, KuCoin toeing the Binance path? How to avoid another clampdown spree

New Blockchain Titan: Lackluster Market Movement from Ethereum and Solana Leads DeFi Investors to...

Join our free newsletter for daily crypto updates!