Ethereum
SEC Sues Ethereum Company Consensys, Expanding Crackdown Industry-Wide
“Consensys violated federal securities laws by failing to register as a broker-dealer and failing to register the offer and sale of certain securities,” the court file alleged.
In April, Consensys, which provides blockchain software, attempted to preempt the SEC’s action with its own lawsuit in Texas, alleging overreach by the regulator. The 10-year-old company said its suit followed three subpoenas issued last year, as well as a Wells notice from the SEC claiming that Consensys was violating federal securities laws.
So far this year, the SEC has sent notices to Wells, filed lawsuits or reached settlements with a host of crypto companies focused on Ethereum and decentralized finance, including ShapeShift, TradeStation and Uniswap. The agency is also apparently investigation into the Ethereum Foundation.
Less than two weeks ago, Consensys declared victory in its fight against the SEC.
“The SEC Enforcement Division responded by informing us that it is closing its investigation into Ethereum 2.0 and will not pursue enforcement actions against Consensys,” the company wrote in a statement. June 18.
A Consensys spokesperson said in an emailed statement Friday that the action was part of an “anti-crypto agenda” at the SEC.
“This is simply the latest example of SEC regulatory overreach, a transparent attempt to redefine well-established legal standards and expand the SEC’s jurisdiction through enforcement action. justice,” the company said. “We believe the SEC has not been given the authority to regulate software interfaces like MetaMask. »
The spokesperson added: “We will continue to defend our case in Texas and defend this new case in New York.”