Consensys Files Lawsuit Against SEC Over Ethereum

Consensys has taken legal action against the US Securities and Exchange Commission (SEC) in response to what it calls an “unlawful seizure of authority” over the cryptocurrency.

The company is seeking a federal court ruling that ETH is not a security, and that any investigation against Consensys based on this idea would violate their fifth amendment rights and the Administrative Procedures Act.

They also argue that their MetaMask wallet is not a broker under federal law, and that its staking service does not violate securities laws.

Consensys is requesting an injunction to prevent the SEC from investigating or taking enforcement action related to MetaMask’s Swaps or Staking functions.

According to the complaint filed on Thursday, Consensys received a Wells notice from the SEC on April 10 informing them of the regulator’s intent to take enforcement action against the company for allegedly violating securities laws through its MetaMask wallet product.

However, Consensys denies acting as a broker, stating that the wallet is simply an interface and does not hold customer assets or carry out transactions.