{"id":18775,"date":"2024-04-25T20:30:02","date_gmt":"2024-04-25T20:30:02","guid":{"rendered":"https:\/\/coinengineer.io\/blog\/?p=18775"},"modified":"2024-04-25T19:49:57","modified_gmt":"2024-04-25T19:49:57","slug":"consensys-sues-sec-for-illegal-jurisdiction-over-ethereum","status":"publish","type":"post","link":"https:\/\/coinengineer.net\/blog\/consensys-sues-sec-for-illegal-jurisdiction-over-ethereum\/","title":{"rendered":"Consensys Sues SEC for &#8216;Illegal Jurisdiction&#8217; Over Ethereum"},"content":{"rendered":"<p>Ethereum developer <strong>Consensys<\/strong> has filed a lawsuit against the US Securities and Exchange Commission (SEC), pushing back against what it calls an \u201cillegal usurpation\u201d of authority over Ethereum by the federal regulator.<\/p>\n<p>The company responded that a federal court had declared that <a href=\"https:\/\/coinengineer.net\/blog\/the-justin-sun-sec-case-a-closer-look-at-the-allegations\/\">ETH<\/a> was not a security, that any ConsenSys investigation based on the notion that ETH was considered a security would violate the company&#8217;s Fifth Amendment rights and the Administrative Procedures Act, and that MetaMask is not an intermediary under federal law. , claims that MetaMask&#8217;s staking service does not violate securities law and is seeking an interim injunction preventing the <a href=\"https:\/\/coinengineer.net\/blog\/ripple-labs-has-pushed-back-against-secs-proposal\/\">SEC<\/a> from investigating or taking legal action regarding MetaMask&#8217;s Swapping or Staking functions.<\/p>\n<p>In the complaint filed against the SEC and its five commissioners on Thursday, Consensys revealed that the SEC received a notice from Wells on April 10 informing the company of its intent to violate securities laws through its MetaMask wallet product. Consensys denies acting as an intermediary, claiming the wallet is &#8220;merely an interface&#8221; and &#8220;does not hold customers&#8217; digital assets or perform any transaction functions.&#8221;<\/p>\n<p>The complaint also cites the SEC&#8217;s increased authority over Ethereum, citing its own past statements that the cryptocurrency is a commodity, not a security (referencing former director Bill Hinman&#8217;s 2018 speech), and the Commodity Futures Trading Commission, which oversees derivatives tied to Ethereum. It is stated that it is against the authority of the CFTC.<br \/>\nIn its filing, Consensys argues that the company \u201chas built its business against this backdrop of regulatory consensus\u201d and that the SEC\u2019s new usurpation of authority over Ethereum\u2014which it calls \u201ca spin\u201d\u2014\u201cwould violate the fair notice requirement under the Constitution&#8217;s due process clause.\u201d<br \/>\n\u201cThe regulator&#8217;s illegal usurpation of authority over ETH would be disastrous for the Ethereum network and Consensys,\u201d the lawsuit claims.<br \/>\nThe case also relies on the \u201cbig questions doctrine,\u201d a Supreme Court ruling that bars federal regulators from dramatically exceeding the scope of Congressional mandates. In arguments brought by Terraform Labs, two judges have already ruled out that crypto would not fall under this doctrine.<\/p>\n<p>ConsenSys filed its brief in the Federal Court for the District of North Texas, along with groups like the Blockchain Association and companies like Legit Exchange, which have been involved in similar preemptive lawsuits aimed at preventing the SEC from treating certain crypto companies or assets as securities.<br \/>\nIn recent months, the SEC has also filed lawsuits against crypto exchanges such as Binance.US, Binance, and Kraken. Uniswap Labs announced earlier this month that it had received a Wells Notice from the regulator.<\/p>\n<p>.<\/p>\n<hr \/>\n<p><em>You can also freely share your thoughts and comments about the topic in the comment section. Additionally, don\u2019t forget to follow us on our\u00a0<a href=\"https:\/\/t.me\/coinengineernews\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>Telegram,\u00a0<\/strong><\/a><a href=\"https:\/\/www.youtube.com\/@CoinEngineer\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>YouTube<\/strong><\/a>,\u00a0and\u00a0<a href=\"https:\/\/twitter.com\/coinengineers\"><strong>Twitter<\/strong><\/a>\u00a0channels for the latest news and updates.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Ethereum developer Consensys has filed a lawsuit against the US Securities and Exchange Commission (SEC), pushing back against what it calls an \u201cillegal usurpation\u201d of authority over Ethereum by the federal regulator. The company responded that a federal court had declared that ETH was not a security, that any ConsenSys investigation based on the notion<\/p>\n","protected":false},"author":6,"featured_media":13847,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[549,5664,5663,39],"class_list":["post-18775","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-consensys","tag-consensys-eth","tag-consensys-ethereum","tag-sec"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.6 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Consensys Sues SEC for &#039;Illegal Jurisdiction&#039; Over Ethereum - Coin Engineer<\/title>\n<meta name=\"description\" content=\"Ethereum developer Consensys has filed a lawsuit against the US Securities and Exchange Commission (SEC). 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