Consensys Sues SEC Over Alleged Plans to Classify ETH as Security
Summary:
Software development firm Consensys has sued the U.S. Securities and Exchange Commission (SEC) alleging its plans to classify ETH as a security. They claim this approach threatens the Ethereum network and businesses that have developed based on previous regulations that did not consider ETH a security. The move could affect every ETH holder and potential of new participants to access Ethereum's decentralized apps and services.
In a lawsuit filed against the U.S. Securities and Exchange Commission (SEC) and its five commissioners, software development firm Consensys has accused the regulatory body of a plot "to classify ETH as a security." The lawsuit, submitted to the U.S. District Court for the Northern District of Texas on April 25, contends that the SEC has been laboring towards "gaining dominion over the trajectory of cryptocurrency" through strategic actions set on categorizing Ether (ETH) as a security. Consensys pointed to the SEC's past decisions, and even mentioned Chair Gary Gensler's remarks, substantiating that ETH wasn't deemed a security as far back as 2018. They emphasized the possible implications of the commission going back on its stance, especially after business institutions have established their operations based on that legal precedent. According to the legal document, "An unauthorized control of ETH by the SEC would be a catastrophe for both the Ethereum network and Consensys". It further stated, "Every ETH holder, including Consensys, would be apprehensive about contravening securities regulations when transferring ETH across the network. Moreover, the prospect of new participants obtaining ETH access to capitalize on Ethereum's decentralized apps and services would be nullified, effectively stopping the use of the Ethereum blockchain in the United States, and affecting one of the most remarkable online breakthroughs." Additional details related to this developing news will be incorporated as they emerge.
Published At
4/25/2024 9:31:16 PM
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