Consensys Strikes Back: Lawsuit Against SEC to Safeguard Ethereum Ecosystem
Consensys, a prominent blockchain and web3 software company, has taken legal action against the Securities and Exchange Commission (SEC) to safeguard Ethereum’s status as a dynamic platform fueling numerous web3 advancements. The lawsuit contends that the SEC’s efforts to regulate ether, the cryptocurrency powering the Ethereum network, constitute overreach and threaten innovation.
By targeting Consensys and potentially others, the SEC is accused of unlawfully expanding its authority. This expansion could harm millions of ether holders and stifle Ethereum’s use in the United States, impeding internet technological progress.
Joe Lubin, Co-founder of Ethereum and CEO of Consensys, emphasizes the importance of preserving Ethereum’s accessibility for developers, market participants, and institutions. He asserts that the SEC’s attempt to regulate ether, which has been acknowledged as a commodity rather than a security, is unwarranted and jeopardizes regulatory certainty essential for web3 technologies.
The lawsuit seeks to establish that the SEC lacks the jurisdiction to regulate ether and Ethereum-based interfaces. It argues that ether, while tradable as a commodity, is also integral to non-financial applications across various sectors. Additionally, the lawsuit challenges the classification of software developers creating user-controlled tools as securities brokers, which could hinder web3 development.
Lubin underscores Ethereum’s transformative potential and warns against hindering its growth with unlawful regulation. The lawsuit aims to prevent the SEC from pursuing enforcement actions based on the premise that ether is a security and seeks to protect Consensys from regulatory overreach regarding its MetaMask wallet software.
To rally support for Ethereum’s cause, Consensys encourages individuals interested in internet technology evolution to join their movement by signing up for updates and learning how to contribute to defending the Ethereum ecosystem through the website defendethereum.us
