Big names in the cryptocurrency industry have since been supporting Consensys. Ethereum The Giants launched a preemptive strike against the SEC on Thursday.
The company behind Consensys metamask cryptocurrency wallethas filed a lawsuit against the SEC, claiming the regulator is trying to “seize control of the future of cryptocurrencies” and that its attempts to regulate them are excessive. Ethereum. (Disclosure: Consensys is one of 22 investors. decryption.) The company claims that the SEC plans to regulate Ethereum as a security.—So far, regulators have yet to state this publicly.
“Thank you (Consensys founders and the rest of the team) for standing up and defending our industry.” Uniswap Founder and CEO tweeted yesterday. “We are tired of overreach and harassment.”
The SEC has long had a contentious relationship with the cryptocurrency industry, filing multiple lawsuits against industry leaders such as Binance, Kraken, Uniswap, and Coinbase. This turn of tables was therefore welcomed with open arms by personalities in the space who took to Crypto Twitter to express their delight.
The SEC sent a notice to Wells earlier this month attacking Uniswap, claiming the decentralized exchange violated securities laws. A Wells Notice is a letter sent by the SEC to a person or company informing them that it plans to take enforcement action and file a lawsuit.
In its own lawsuit against the regulator, Consensys said it received the Wells notice from the SEC after years of investigation into Ethereum, the network’s transition to proof-of-stake after the merger, and specifically the Metamask crypto wallet.
Consensys’ preemptive lawsuit seeks to invalidate the SEC’s claims by getting the court to agree that Ethereum is not a security. This is a move that others in the industry have also made recently, including Coinbase.
The San Francisco-based cryptocurrency exchange is currently embroiled in a legal battle with the SEC over charges of selling unregistered securities. Following the Consensys announcement, Coinbase Chief Legal Officer Paul Grewal said: It was posted on Twitter To express your thoughts.
I know ETH is a commodity. We know that ETH is a commodity. The CFTC knows that ETH is a commodity. It is time for the SEC to admit that it still knows that ETH is also a commodity. There are no more games. thank you @Consensys Because we fought against the illegal expansion of the SEC’s power. https://t.co/8w7A4PBwUK
– paulgrewal.eth (@iampaulgrewal) April 25, 2024
“It is time for the SEC to admit that it still knows that ETH is also a commodity. “There are no more games.” “I am grateful to ConsenSys for fighting against the SEC’s unlawful expansion of its authority,” Grewal said.
Binance and Kraken (both still locked in their SEC legal battle) did not immediately respond. decryptionThis is a request for your opinion.
Edited by Stacey Elliott.
