SEC Sues Consensys Over Ethereum Classification: Report

Key Points:

• The SEC has issued a Wells Notice to Consensys, indicating a potential lawsuit.
• In response, Consensys has sued the SEC, seeking confirmation that Ethereum is not a security.
• Consensys has been accused by the SEC of operating MetaMask as an unlicensed broker-dealer.

SEC sues Consensys, seeking a declaration that Ethereum is not a security. The SEC accused Consensys of unlawfully operating MetaMask, and its next steps are uncertain.

According to Zoomer, Consensys has been issued a Wells Notice from the U.S. Securities and Exchange Commission (SEC). The formal warning often indicates an impending lawsuit and typically results in a settlement shortly after.

SEC Sues Consensys: Is Ethereum a security?

In response, Consensys has initiated a lawsuit against the SEC regarding regulatory issues surrounding Ethereum. The firm is seeking a court declaration that Ethereum (ETH) should not be classified as a security.

The lawsuit follows a similar legal battle between Ripple Labs and the SEC over the status of XRP, which resulted in the SEC conceding that XRP is not a security.

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Consensys Launches Lawsuit Against SEC Over Ethereum

As a significant supporter of the Ethereum blockchain, Consensys argues that the SEC’s actions against Ethereum are unlawful and threaten the broader blockchain industry.

The company’s legal filing also mentions that the SEC accused Consensys of operating MetaMask as an unlicensed broker-dealer.

The SEC might respond with a new lawsuit based on the Wells Notice rather than resolve the current lawsuit in court, although their exact course of action remains uncertain.