SEC Sues ConsenSys Over MetaMask and Staking Services
The US Securities and Exchange Commission (SEC) has taken legal action against Ethereum software provider ConsenSys, alleging its MetaMask service operated as an unregistered securities broker.
This lawsuit, filed in New York, also targets Ethereum staking services Lido and Rocket Pool.
According to the court filings, MetaMask facilitated over 36 million crypto transactions in the past four years, with at least 5 million involving tokens such as Polygon (MATIC), Mana (MANA), Chiliz (CHZ), the Sandbox (SAND), and Luna (LUNA).
The SEC classifies these tokens as unregistered securities. The lawsuit further scrutinizes MetaMask’s staking feature, which uses third-party services Lido and Rocket Pool, claiming these integrations amount to “investment contracts” and thus, unregistered securities. The SEC states that ConsenSys has collected over $250 million in fees as an unregistered broker through its MetaMask staking service.
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In response, ConsenSys criticized the SEC’s approach as regulatory overreach, accusing the commission of pursuing an anti-crypto agenda. The company anticipated the SEC’s claim that MetaMask should register as a broker and has actively defended its operations and regulatory stance. Despite earlier SEC investigations concluding without significant consequence, this new lawsuit renews ConsenSys’s legal challenges.
ConsenSys argues that the SEC lacks authority to regulate software interfaces like MetaMask and plans to continue its legal fight in Texas. The company believes the outcome of these legal battles could significantly impact cryptocurrency regulation and the future development of Web3. This situation underscores the ongoing issues arising from unclear and often hostile regulations towards the crypto industry.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
