The US Securities and Exchange Commission (SEC) has filed a lawsuit against Consensys Software, alleging that the company failed to register as a broker and sold unregistered securities.
The lawsuit primarily targets MetaMask, Consensys’ popular software interface. Consensys, which is not surprised by the SEC’s action, claims that the SEC is pursuing an anti-crypto agenda through inconsistent enforcement actions and attempting to expand its jurisdiction unjustly.
The SEC’s suit focuses on MetaMask Swaps, accusing Consensys of brokering over 36 million crypto transactions, including at least 5 million involving crypto securities since 2020. The regulator claims Consensys operates as an unregistered broker by presenting itself as a platform for crypto transactions, recommending trades, handling customer assets, and receiving transaction-based fees.
The SEC also targets Consensys’ staking services, which the SEC claims violate federal securities laws by not providing necessary registration statements. This lawsuit is part of a broader pattern of SEC enforcement against major crypto companies, including Coinbase and Binance, which were recently sued for offering unregistered securities and operating as unregistered brokers and exchanges.
Consensys argues that the SEC’s actions represent overreach and a threat to innovation in the Web3 space. The outcome of this lawsuit could significantly impact the regulation of crypto assets and decentralized platforms in the US, with industry stakeholders closely monitoring the case’s potential effects on innovation and the future of decentralized finance.
