Ethereum
Ethereum backer Consensys sues SEC
Alex Dovbnya
Ethereum software company Consensys sued the SEC
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Ethereum developer Consensys has deposit a lawsuit against the United States Securities and Exchange Commission.
Consensys explains that it has sued the formidable regulator because it believes that it does not want the SEC to extend its jurisdiction by “wrongly” classifying the second largest cryptocurrency as a security.
Additionally, the company claims that the regulator’s “reckless approach” harms Ethereum developers, institutions, and market participants.
Consensys says other players in the industry should be equally “harmed” by the regulator’s aggressive actions.
“At Consensys, we believe that advancing the adoption of blockchain platforms like Ethereum will help reshape and improve the way future generations manage economic, financial, social, political and technological systems, creating a more equitable, transparent world and innovative,” the company said. added.
The recent legal action confirms previous reports about the SEC’s efforts to classify the second-largest cryptocurrency as a security with a series of subpoenas.
As reported by U.Todaythe SEC is expected to reject some Ethereum ETF proposals, including that of BlackRock.
Joe Lubin, founder of Consensys told Fortune that the SEC’s hostile stance was probably intended to justify the upcoming rejection. Lubin says the SEC wants to “stifle” innovation and prevent massive capital flows into the ecosystem. However, it is worth noting that BlackRock’s Larry Fink said it was possible to launch an Ether ETF even if Ether was classified as a guarantee.
The price of Ether (ETH) increased by 0.7% in the last 24 hours, according to data from CoinGecko.
The SEC is currently engaged in heated legal battles with some of the largest cryptocurrency companies, including Coinbase, Uniswap and Ripple. As reported by U.TodayBrad Garlinghouse, CEO of Ripple, predicted that the SEC would lose its “war” against Ethereum after initial reports detailing the SEC’s efforts to crack down on the top altcoin.
About the Author
Alex Dovbnya
Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience covering everything related to this booming industry, from price analysis to blockchain disruption. Alex has authored over 1,000 articles for U.Today, CryptoComes and other fintech media. He is particularly interested in regulatory trends across the world that are shaping the future of digital assets. He can be contacted at alex.dovbnya@u.today.