NEW YORK, Thursday, April 25, 2024 – In a lawsuit filed on April 25, blockchain technology company Consensys said it was suing the US Securities and Exchange Commission (SEC) over the classification of Ethereum (ETH), the world’s second-largest cryptocurrency. 1
The lawsuit seeks clarity from the SEC on whether Ethereum is considered a security under U.S. law.
Consensys, a leading developer of Ethereum-based tools and infrastructure, argues that the SEC has previously indicated Ethereum is not a security.
They point to statements made by former SEC Director William Hinman in 2018 and the launch of Ethereum futures contracts in the US in 2021 under the purview of the Commodity Futures Trading Commission (CFTC).
The lawsuit outlines three key objectives for Consensys:
Classification of Ethereum as a Commodity: Consensys seeks a definitive ruling from the court declaring Ethereum a commodity, similar to how Bitcoin is currently viewed by the SEC.
Non-Security Status for MetaMask: The lawsuit also aims to clarify that MetaMask, a popular Ethereum wallet developed by Consensys, is not considered a security broker by the SEC.
Injunction Against Future Action: Finally, Consensys seeks an injunction to prevent the SEC from taking any future enforcement actions against them based on the unclear classification of Ethereum.
The SEC has not yet commented on the lawsuit. The classification of cryptocurrencies remains a complex legal issue in the US, with regulatory bodies taking a cautious approach. This lawsuit by Consensys could be a landmark case in determining the regulatory landscape for Ethereum and potentially other cryptocurrencies.
- Consensys Lawsuit: https://consensys.io/blog/consensys-suing-sec-to-defend-ethereum-ecosystem[↩]
