Consensys, which has implemented the popular MetaMask wallet, has accused the US Securities and Exchange Commission (SEC) of overreaching.
In a lawsuit dated April 25, 2024, Consensys raised the issue of regulating Ethereum (ETH), the second-largest blockchain. The lawsuit stems from the SEC's claims that Ethereum should be classified as a security, according to BeInCrypto.
Consensys presented the reasons for its lawsuit on its official X page, stating that its goals are to ensure that Ethereum remains a dynamic and irreplaceable blockchain platform and to preserve access for countless developers and market participants.
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Consensys argued that the SEC exceeded its regulatory authority by classifying ETH as a security. In addition, Consensys argued that the SEC's policy harms developers and investors who rely on Ethereum's robust and decentralized platform.
Consensys' arguments are based on the purpose and characteristics of Ethereum itself. First and foremost, Ethereum is a platform for information technology and innovation that should not be blocked by aggressive regulatory measures.
Consensys also called on all those who disagree with the SEC's actions and policies to unite. Ethereum co-founder and Consensys CEO Joseph Lubin said of the need and importance of the lawsuit, "We feel compelled to act. Ethereum is for everyone."
In the lawsuit, Consensys claims that the SEC's position is wrong and criticizes claims that Ethereum does not meet traditional security criteria as claimed by the SEC.
Consensys pointed out in its appeal to the court that the SEC makes inconsistent policy statements and that its attempts at regulation do not provide clear guidance to market participants.
The crypto community, including the head of Uniswap, Hayden Adams, strongly supports the actions of Consensys. Recall that in early April, the SEC filed charges against the decentralized exchange Uniswap.
Hayden Adams said, "Thank you, Consensys, for standing up and defending our industry. We are tired of the abuse and harassment."
Paul Grewal, Coinbase's Chief Legal Officer, also supported Consensys: "It's time for the SEC to recognize that ETH is also a commodity. No more games. Thank you to Consensys for standing up to the SEC's illegal overreach of its authority."
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