Tony Kim
September 28, 2024 11:50
The Web3 movement, led by Consensys, is facing serious regulatory challenges from the SEC, threatening innovation in the blockchain space.
The Web3 movement, which aims to foster a more inclusive, transparent and decentralized internet, is facing significant regulatory backlash in the United States. According to linea.mirror.xyz, the Web3 builder community is facing a threat from what many see as reckless regulatory action.
Why Web3 Protection Is Important
In April 2024, Consensys, a founding member of Linea, announced that it had filed a lawsuit against the U.S. Securities and Exchange Commission (SEC). The purpose of the lawsuit is to stop scrutiny of the Ethereum ecosystem and make it clear that blockchain software developers like Consensys are not intermediaries under U.S. securities laws. The SEC closed its investigation into Ethereum but proceeded with enforcement, claiming that Metamask was an unlicensed broker of unregistered securities.
This move by the SEC is seen by many in the industry as a misunderstanding of what a cryptocurrency wallet is and what it does. This also poses a serious threat to blockchain software development in the United States. This enforcement action is perceived as a policy choice targeting technological innovation driven by Web3 builders who are at the forefront of leveraging and developing this technology.
Since this lawsuit began, the entire Consensys team has been fighting for our right to innovate, not only for the company, but for the entire global cryptocurrency community.
Join the movement to support Web3 Builder
Over the coming weeks, Consensys and Linea will use their channels to share the stories of the developers behind Web3 in our “Builder Stories” series. This series aims to take an in-depth look at the people and innovative projects at the heart of Web3. The new season will feature a diverse cast of creators, from veterans to emerging talents, showcasing the people, skills and technological innovations at stake if the SEC’s overreach continues.
For example, SheFi founder Maggie Love’s story is featured in the series, highlighting the important role women play in blockchain innovation.
The community is encouraged to join the conversation and use the #Web3forAll hashtag when sharing on social media. More information about Consensys’ lawsuit against the SEC can be found on its official site, along with details on how to join the Web3ForAll movement.
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