Regulation
ConsenSys Defends MetaMask in SEC Legal Battle
ConsenSys made its position known following recent legal proceedings by the U.S. Securities and Exchange Commission (SEC) in relation to MetaMask, a widely used software interface.
The company describes these actions as part of a broader “anti-crypto” regulatory strategy. ConsenSys also argues that the SEC’s actions to bring MetaMask into the classification of a securities broker are illegal and a clear demonstration of overlapping existing legal frameworks.
Consensys fully expected the SEC to follow through on its threat to require our MetaMask software interface to register as a securities broker-dealer. The SEC has pursued an anti-cryptocurrency agenda driven by ad hoc enforcement actions.
This is just the latest example of its regulation…
— Consensys (@Consensys) June 28, 2024
This is the main idea of their legal reasoning where MetaMask is considered not compliant with the requirements that would make it a broker and oblige it to register as such.
Furthermore, ConsenSys says that MetaMask functions solely as a software interface, providing access to blockchain technologies without directly engaging in securities transactions.
ConsenSys, to avoid ambiguity and protect its business, filed a lawsuit in Texas seeking a declaratory judgment to strengthen its position against what it considers excessive regulation.
SEC Action Background
The legal dispute closely follows the The SEC filed a lawsuit against ConsenSys claiming that MetaMask acts as an unregistered broker and offers staking services that violate securities laws. These allegations are part of broader scrutiny that ConsenSys had only recently emerged under, having come under investigation for several aspects of its Ethereum-related operations.
However, ConsenSys continues to forge ahead and continue its efforts as a leader and innovator in the web3 space. ConsenSys does not shy away from the defense and broader concept of web3 technologies, stating that the battle is not just for its own gain but for the core functionality of the crypto space.