Lido DAO

DeFi

Gary

Rocket Pool

The post <a href="https://coinpedia.org/news/bidens-sec-attacks-crypto-giants-sec-targets-uniswap-kraken-and-more/">Staking Under Fire: SEC Sues ConsenSys Over Lido &amp; Rocketpool</a> appeared first on <a href="https://coinpedia.org">Coinpedia Fintech News</a> 
The crypto world is reeling after the SEC’s latest move. And yes, it’s brutal. 
The U.S. Securities and Exchange Commission (SEC), led by Gary Gensler, has recently alleged that prominent decentralized finance (DeFi) projects like <a href="https://markets.coinpedia.org/lido-dao/">Lido</a> and <a href="https://markets.coinpedia.org/rocket-pool/">Rocket Pool </a>qualify as securities. This move adds to a growing list of legal actions against major crypto entities, including Uniswap, Kraken, Coinbase, Metamask, and Robinhood. Lido DAO (LDO) and Rocket Pool (RPL) saw sharp price declines on Friday, with LDO down 15% and RPL down 10%, as the market responded to new regulatory challenges facing staking services. 
<h2 class="wp-block-heading" id="h-target-locked-in-consensys">Target Locked In: Consensys?!</h2> 
The SEC has <a href="https://coinpedia.org/news/sec-files-complaint-against-consensys-over-unregistered-crypto-transactions/" target="_blank" rel="noreferrer noopener nofollow">filed </a>a complaint against <a href="https://coinpedia.org/news/sec-files-complaint-against-consensys-over-unregistered-crypto-transactions/">ConsenSys</a> for allegedly engaging in the unregistered offer and sale of securities. Since January 2023, ConsenSys has reportedly facilitated the sale of unregistered securities for Lido and Rocket Pool, which offer liquid staking tokens like stETH and rETH. These tokens, unlike traditional staked assets, can be freely traded and used. The SEC claims that ConsenSys is unlawfully acting as a broker for these transactions and failing to register as required by law. 
Despite the allegations, neither Lido nor Rocket Pool has filed a registration statement with the Commission for the offer and sale of these investment contracts. This lack of compliance has put these projects squarely in the SEC’s crosshairs. 
ConsenSys Fights Back 
ConsenSys reacted to the SEC’s allegations by accusing the agency of an anti-crypto agenda and regulatory overreach, calling the latest charges a continuation of its unfair enforcement actions against the crypto industry. 
<h2 class="wp-block-heading" id="h-the-crypto-community-responds">The Crypto Community Responds</h2> 
Ryan Sean Adams, a crypto investor and expert, argues that these regulatory measures are part of a broader, systematic attempt to attack the cryptocurrency industry, which is popular among U.S. crypto users. He believes that Gensler’s aggressive stance could harm these beloved projects and potentially stifle the growth of the crypto sector. 
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 <blockquote class="twitter-tweet" data-width="550" data-dnt="true">
 Gary Gensler's SEC just filed allegations that Lido and Rocketpool are securities. Another attack on crypto. Biden's SEC now has lawsuits against: 1. uniswap 2. kraken 3. coinbase 4. metamask 5. robinhood And is alleging lido and rocketpool are securities. These are projects…— RYAN SΞAN ADAMS – rsa.eth 
 <img src="https://s.w.org/images/core/emoji/15.0.3/72x72/1f984.png" alt="🦄" class="wp-smiley" style="height: 1em; max-height: 1em;"> (@RyanSAdams) <a href="https://twitter.com/RyanSAdams/status/1806759927131595158?ref_src=twsrc%5Etfw">June 28, 2024</a>
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Politics at Play! 
According to Adams, these regulatory actions are driven by political motives. He claims that Gensler’s approach might alienate marginal voters and negatively impact President Biden’s chances of re-election. Adams further suggests that Biden is not directly managing these policies, but rather, they reflect a larger agenda of control and expansion by the administrative state. 
He also contends that there was a chance for Democrats to adopt a more favorable stance on cryptocurrency earlier in the year, but that opportunity has now been lost. 
<h2 class="wp-block-heading" id="h-a-broader-crackdown">A Broader Crackdown</h2> 
The SEC’s lawsuit against ConsenSys is part of a broader crackdown on staking services in the cryptocurrency industry. Earlier this year, in February, the SEC successfully sued Kraken, leading the exchange to settle for $30 million and shut down its staking services for U.S. clients. 
This recent legal action against ConsenSys extends the SEC’s ongoing efforts to regulate and enforce rules on staking platforms. The crypto community remains divided on whether these measures are necessary regulations or a power grab by the government. 
Also Read: <a href="https://coinpedia.org/news/ripple-vs-sec-judge-amy-berman-jackson-upholds-ripple-xrp-ruling-in-binance-vs-sec-case/" target="_blank" rel="noreferrer noopener">Ripple vs SEC: Judge Amy Berman Jackson Upholds Ripple XRP Ruling in Binance vs. SEC Case</a> 
Where do you stand on the SEC’s crackdown on staking services? We’d love to hear from you!

Staking Under Fire: SEC Sues ConsenSys Over Lido & Rocketpool

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