2024-04-25 16:19:44 Eastern Standard Time
ConsenSys, the blockchain software technology company behind the Ethereum blockchain, has filed a lawsuit with the U.S. Securities and Exchange Commission (SEC).
ConsenSys sues SEC
The lawsuit, filed in the U.S. District Court for the Northern District of Texas, concerns ConsenSys' claims against the SEC's impending enforcement actions against the company.
Also key to the case is ConsenSys' argument that the SEC has gone too far in regulating the crypto sector. The company is also asking the court to state that Ethereum is not a security, one of the hottest topics in the market today, especially after the recent news that the SEC has subpoenaed the Ethereum Foundation.
ConsenSys said in a press release that allowing the SEC to “expand regulatory scope” would destroy the value of Ethereum and effectively halt the use of the Ethereum blockchain in the United States.
Joe Rubin, co-founder of Ethereum and CEO of ConsenSys, said in a statement: “The lawsuit we filed today will harm thousands of people with a stake in the world's second-largest blockchain. “The aim is to maintain access for developers, market participants and institutions.”
Rubin said the SEC is arbitrarily expanding its jurisdiction in trying to regulate what constitutes a product.
ConsenSys wants the court to confirm that the SEC does not have legal authority to regulate ETH, decentralized applications built on Ethereum, or the blockchain itself.
The court should also declare the SEC's investigation into cryptocurrencies, blockchain networks, and other actions against ConsenSys as violations of due process and fair notice, the company said in a press release.
Consensys' lawsuit adds to recent lawsuits against the SEC involving the Blockchain Association and Legit Exchange. In 2023, the SEC suffered a blow when a judge ruled that XRP was not a security.
ConsenSys sues SEC, asks court to declare Ethereum not a security Post appeared first on Invezz
