SEC claims unsupported in law

Ethereum infrastructure developer Consensys has responded to U.S. Securities and Exchange Commission allegations of violations of federal securities law, responding to lawsuits filed against the agency.

The SEC had previously accused Consensys’ crypto wallet MetaMask of operating as an unregistered broker and issuer of securities.

Consensys completely denied the SEC’s allegations, criticizing the agency and its chairman, Gary Gensler, for what it described as an unconstitutional attack on the decentralized finance ecosystem. The response filed with the court reaffirmed the SEC’s position and dissatisfaction with its case.

This action is just the latest step in the SEC’s latest campaign to seize control over the future of blockchains and cryptocurrency, one of the fastest-growing and most innovative technologies in the world. His inclusion in this crypto architecture is not supported by law; their claims must fail.

Consensy’s response to SEC lawsuit

Lubin’s firm filed a lawsuit against the SEC over its Ethereum (ETH) investigation before it became the subject of the SEC investigation. Agency prosecutors closed the investigation and immediately filed a complaint against MetaMask’s creator. The SEC alleges that MetaMask facilitates illegal securities trading and that the staking service violates financial regulations.

Consensys filed suit against the regulator to determine whether the law gave the SEC regulatory oversight rights. Consensys’ lawyer, Bill Hughes, announced that US Judge O’Connor gave an expedited timetable for the case.

Meanwhile, CEO Joseph Lubin announced staff layoffs attributed to regulatory battles and macroeconomic factors, and Consensys reduced its workforce by 20%.

Many firms under pressure from SEC lawsuits may view the upcoming U.S. general election as a potential advantage. Digital asset companies have outpaced all other industries by donating over $190 million to crypto-focused super PACs like Fairshake.

Republican candidate Donald Trump announced that he would dismiss Gensler in January 2025 if elected. If commissioners reach an impasse, the SEC’s legal proceedings may temporarily stall. Conversely, if Democrat Kamala Harris wins, Gensler could remain in office until 2026.