As a researcher with a background in blockchain technology and securities law, I find the recent SEC lawsuit against Consensys deeply concerning. The allegations that Consensys is operating as an unregistered security broker via Metamask are serious, and if true, could have significant implications for the entire crypto industry.
As a crypto investor, I’ve come to understand that the US Securities and Exchange Commission (SEC) has taken legal action against ConsenSys, a well-known Ethereum development studio. The SEC claims that ConsenSys is functioning as an unregistered securities broker through Metamask, which is a popular digital wallet used in the Ethereum network. This means that according to the SEC, ConsenSys may be facilitating the sale and purchase of securities without proper registration, potentially putting investors like myself at risk. It’s important for us all to stay informed about these developments as they unfold.
The SEC admits that it has neglected its duty to safeguard investors by not requiring registration of an unregistered broker.
Significantly, the regulatory body asserts that the investing public considers Lido and Rocket Pool staking initiatives as securities based on the investors’ belief they’re contributing to a collective business endeavor with the anticipation of earning profits.
“Through its MetaMask Staking program, Consensys also acts as a broker by effecting transactions in the Lido and Rocket Pool investment contracts for the account of others. Consensys solicits potential investors, holds itself out as a place to buy and sell the investment contracts, and recommends which of the two investment contracts will offer the highest rewards,” the SEC said.
The SEC has identified Polygon (MATIC) and Chiliz (CHZ), among others, as potential unregistered securities.
A few short days prior to the recent legal action, the Securities and Exchange Commission (SEC) made public its decision to discontinue its probe into Ethereum 2.0. This news brought about widespread jubilation among developers, with ConsenSys hailing it as a significant triumph. Nevertheless, ConsenSys founder Joseph Lubin cautioned that the battle for a favorable regulatory landscape was far from concluded.
According to U.Today’s news, ConsenSys, a well-known Ethereum development studio, initiated a legal battle against the Securities and Exchange Commission (SEC) in April. The company alleged that the SEC aimed to negatively impact the Ethereum ecosystem. They sought a court injunction to prevent the SEC from filing lawsuits targeting ConsenSys over MetaMask Swaps or Staking.
The price of Ethereum is down 2% over the past 24 hours, according to CoinGecko.
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2024-06-28 20:56