Ethereum infrastructure developer Consensys has filed its response to the U.S. Securities and Change Fee’s claims of federal securities legislation violations, including to its lawsuits in opposition to the company.
The SEC beforehand accused Consensys’ crypto pockets, MetaMask, of working as an unregistered dealer and securities issuer.
Consensys totally refuted the SEC’s allegations, criticizing the company and its chair, Gary Gensler, for what it described as an unconstitutional assault on the decentralized finance ecosystem. Its court-submitted reply reaffirmed its stance and dissatisfaction with the SEC’s lawsuit.
This motion is simply the newest step within the SEC’s current marketing campaign to grab management over the way forward for blockchains and cryptocurrency, one of many fastest-growing and most progressive applied sciences on the earth… The SEC’s try and impose its regulatory authority on this know-how and insert itself into this crypto structure is unsupported within the legislation — its claims should fail.
Consensys response to SEC swimsuit
Earlier than changing into the topic of an SEC probe, Lubin’s agency had sued the SEC over its Ethereum (ETH) investigation. Company prosecutors closed the inquiry and promptly filed a grievance in opposition to MetaMask’s creator. The SEC alleges that MetaMask facilitated unlawful securities buying and selling and that its staking service violated monetary laws.
Consensys countersued the regulator to find out whether or not the legislation grants the SEC regulatory oversight. Invoice Hughes, a lawyer for Consensys, revealed that U.S. Decide O’Connor granted an expedited calendar for the case.
In the meantime, CEO Joseph Lubin introduced workers layoffs attributed to regulatory battles and macroeconomic elements, with Consensys lowering its workforce by 20%.
A number of companies beneath stress from SEC litigation might even see the approaching U.S. basic elections as a possible benefit. Digital asset firms have donated over $190 million to crypto-focused tremendous PACs like Fairshake, outspending all different industries.
Republican candidate Donald Trump has acknowledged he would dismiss Gensler in January 2025 if elected. SEC authorized actions could quickly stall within the occasion of a commissioner stalemate. Conversely, Gensler might proceed in workplace till 2026 if Democrat Kamala Harris wins.
