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MetaMask developer Consensys has asked a Texas Federal Court to declare ethereum not a security in a rejection of the SEC's sweeping enforcement actions.
Consensys presented a crypto-regulations/defend-ethereum” target=”_blank” rel=””>lawsuit against the US SEC for what it describes as the agency's illegal attempt to reframe its constitutional authority to include oversight of ethereum (eth), the second-largest decentralized cryptocurrency network.
According to the blockchain developer, the SEC has wrongly labeled eth as a security and taken a “reckless approach” that will stifle innovation if left unchecked.
“We have witnessed time and again the current SEC contradicting itself with ever-changing views on the blockchain, constantly mischaracterizing this technology and what is based on it as a shallow and doomed investment scheme, instead of the innovative technology that it is.
twitter.com/Consensys/status/1783562219063853124″ target=”_blank” rel=””>consensus SEC lawsuit announcement
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The 34-page legal document released on April 25 argued that the SEC's enforcement rampage could also undo the work Congress has accomplished on stablecoin policy and spur technological advancement beyond U.S. borders. .
Consensys stated that this “aggressive regulatory overreach by the SEC” extends beyond the US capital markets and is counterproductive to the watchdog's original mandate.
Consensys strikes back
The MetaMask creator's complaint comes as the SEC has increased its litigation efforts against the crypto industry and requested an additional $158 million to muzzle the “Wild West” digital asset ecosystem.
Additionally, the lawsuit is a response to a Wells Notice issued against Consensys earlier this month, which suggested that MetaMask could be accused of operating as an unregistered broker-dealer entity.
The industry is also coming together to fight an investigation into the ethereum Foundation, a non-profit organization dedicated to improving the eth ecosystem. As crypto.news reported last month, several companies and businesses received a voluntary consultation from an anonymous state authority.
After being accused of federal violations, interested parties such as Coinbase and Kraken are fighting Wall Street's securities regulator in court. Industry advocates and dissident SEC commissioners, such as Hester Peirce, also insist that the agency has failed to provide clear rules for the nascent crypto market.
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