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Consensys Takes Legal Action Against SEC
Ethereum developer firm Consensys, led by Joe Lubin, has filed a lawsuit against the U.S. Securities and Exchange Commission (SEC) regarding what they perceive as “overzealous regulation” surrounding the Ethereum blockchain.
Chaos Caused by SEC’s Reckless Approach
In a recent blog post, Consensys highlighted the chaos caused by the SEC’s regulatory approach to developers, market participants, institutions, and nations involved in critical systems on the Ethereum platform.
- The SEC’s jurisdiction is over securities, and it previously stated that ether should not be treated as a security.
- Consensys argues against the SEC expanding its jurisdiction to regulate the future of the Internet.
Ether’s Importance and SEC’s Impact
Ether, the native token of the Ethereum blockchain, plays a crucial role in the development of applications across various sectors. The SEC’s approach could hinder innovation by classifying non-financial platforms as financial applications, subjecting them to SEC oversight and approval.
Coinbase’s Similar Legal Action
Consensys’ lawsuit follows a similar move by Coinbase, which filed a lawsuit against the SEC in March to seek clear guidelines for the cryptocurrency sector.
SEC’s Lack of Digital Asset Rulemaking
Both Consensys and Coinbase criticize the SEC for its passive stance on crypto regulation, emphasizing the need for specific rules to provide clarity and support industry development.
Ian is a cryptocurrency enthusiast blending humor with professionalism. With an engineering background and a storyteller's heart, he simplifies the blockchain world with sharp analysis and a touch of wit. At Cryptowire, he brings his unique perspective to make digital financial innovation accessible to all.
