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The Crypto Industry Reacts to Consensys’ Lawsuit Against the SEC
Leading figures in the crypto industry have shown their support for Consensys after the Ethereum giant made a bold move by filing a lawsuit against the SEC. Consensys, known for its MetaMask crypto wallet, has accused the regulator of attempting to exert control over the future of cryptocurrency and overstepping its boundaries in regulating Ethereum. The SEC’s intentions to classify Ethereum as a security, without any public declaration to that effect, have sparked controversy.
Uniswap founder and CEO, Hayden Adams, expressed his gratitude towards Consensys for taking a stand against what he perceives as regulatory overreach and harassment. The SEC’s history of legal battles with major players in the industry, including Binance, Kraken, Uniswap, and Coinbase, has created a tense environment.
The SEC’s Aggressive Stance
In recent times, the SEC issued a Wells notice to Uniswap, accusing the decentralized exchange of violating securities laws. A Wells notice serves as a warning to individuals or entities that enforcement action is imminent. In response, Consensys disclosed that it too had received a Wells notice from the SEC after a thorough investigation into various aspects of Ethereum, including the transition to proof of stake and the MetaMask wallet.
Consensys’ lawsuit aims to establish in court that Ethereum should not be classified as a security, thereby challenging the SEC’s claims. This preemptive legal action mirrors efforts made by other industry players like Coinbase, which is currently embroiled in legal disputes with the SEC over allegations of selling unregistered securities.
Industry Support for Consensys
Following Consensys’ lawsuit, Coinbase’s Chief Legal Officer, Paul Grewal, took to Twitter to voice his support. He emphasized that Ethereum is recognized as a commodity by various entities, including the CFTC, and urged the SEC to acknowledge the same. Grewal commended Consensys for pushing back against what he views as the SEC’s overreach.
Despite ongoing legal battles with the SEC, Binance and Kraken, two prominent exchanges, did not provide immediate comments in response to Decrypt’s inquiries.
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