2024-04-25 16:19:44 ET
Consensys, a blockchain software technology company backing the Ethereum blockchain, has sued the US Securities and Exchange Commission (SEC).
Consensys sues the SEC
The lawsuit, filed in the District Court for the Northern District of Texas, concerns Consensys’ complaint against the SEC’s impending enforcement action against the company.
Also key to the lawsuit is Consensys’ argument that the SEC is overreaching in its regulation of the crypto sector. The company also wants the court to state that Ethereum is not a security, one of the hottest topics in the market today, particularly following recent news that the SEC had subpoenaed the Ethereum Foundation.
In a press release , Consensys said that allowing the SEC to “expand its regulatory purview” will destroy Ethereum’s value and effectively halt the Ethereum blockchain’s use in the United States.
“The case we have filed today is intended to preserve access for the thousands of developers, market participants, and institutions who have a stake in the world’s second largest blockchain,” Ethereum co-founder and Consensys CEO Joe Lubin said in a statement.
According to Lubin, the SEC is arbitrarily expanding its jurisdiction as it seeks to regulate what is a commodity.
Consensys wants the court to confirm that the SEC doesn’t have any legal authority to regulate ETH, the decentralised applications built on Ethereum, or the blockchain itself.
The court should also declare SEC’s investigation into the cryptocurrency, the blockchain network and such other action against Consensys as a vilation of due process and fair notice, the company said in the press release.
Consensys’ case adds to recent lawsuits against the SEC, including that of Blockchain Association and Legit Exchange. In 2023, the SEC suffered a blow when a judge ruled that XRP was not a security.
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