Consensys sues the Securities Commission to defend Ethereum!

Consensys, the company behind the popular MetaMask wallet, has filed a complaint with the Securities and Exchange Commission, defending Ethereum and its network, which Gary Gensler and his colleagues have described as a security.

A proactive approach. Consensys files a complaint against the Securities and Exchange Commission

On Wednesday, April 25, the company behind the MetaMask wallet, Consensys, filed a lawsuit in a Texas court against SEC regulators. According to Joseph Lubin, co-founder of Ethereum and Consensys, they “had to act” and “Ethereum is for everyone.”

Not yet. The Securities and Exchange Commission has not budged from its long-standing stance against digital currencies it classifies as securities, such as Ethereum. This situation is causing a lot of concerns in the market, which is expected to influence the authority's stance on its decision regarding the approval of Ethereum exchange-traded funds.

While everyone still has to wait for the regulator's decision, I have decided Consensysled by its founder Joseph Lubin, has been pursuing legal action for several years and responding to SEC attacks on the industry.

“Consensys has taken an important step toward preserving access to the current Ethereum blockchain, and therefore permissionless innovation. We have filed a lawsuit against the SEC. We took this action for two main reasons: (1) The SEC should not be allowed to ". The SEC is arbitrarily expanding its jurisdiction to include regulating the future of the Internet, and (2) the SEC's reckless approach is creating chaos for developers, market participants, institutions, and countries that build or manage already significant systems running on Ethereum.

👈Read more: Why has the Securities Commission used litigation to regulate digital currencies?

In fact, the regulations applicable to a new emerging industry often point in the same direction. Regulators and governments are taking drastic measures, including to intimidate the market. As a result, players and entrepreneurs in this market find themselves confronted with great complexity, which slows down the development of the market.

This is what Consensys indicates in its press release. Consensys is not just doing this for Ethereum, but for the cryptocurrency ecosystem as a whole:

“Our work today aims to protect the Ethereum ecosystem as well as the entire DEP ecosystem. Because Ethereum is not just about obtaining information without permission. “This is human creativity without permission.”

👈Read more: Why has the SEC's uproar against cryptocurrencies subsided and when will it return?

Consensys is engaged in a difficult mission that will make many masks fall

First of all, it is worth remembering that the SEC had decided to investigate the initial funding and ICO of Ethereum. As a reminder, the Ethereum ICO Process This is the subject of much controversy, as Vitalik and Joseph allegedly used the ICO to embezzle and manipulate funds. According to the investigator Truth Labs X platform.

“Lupin and Vitalik recycled Ethereum from the ICO to buy more Ethereum during the ICO. The founders called the ICO an initial coin offering, but it was literally just a token sale. 2 large whales accounted for more than half of the ICO sales received by Ethereum. Ethereum was built from Mt.Gox BTC funds and was funded by CCP. If you trace the wallet that created the ETH ICO wallet on Bitcoin, its initial funding did not come directly from a single address, but from over 50 Silk Road addresses.

According to former Ethereum advisor Stephen Narayev, his message Joseph Lubin The Consensys “scandal”. Furthermore, their statements are “just a smokescreen” hiding the truth:

“It is a fact that Ethereum is not decentralized. It is shameful that Joseph Lubin blatantly violated its terms and conditions by engaging in speculative purchases of ICOs, thereby converting them into securities. “This is a criminal offense and all the talk about decentralization is just a smokescreen. »

As a reminder, Gary Gensler publicly spoke about this manipulation of the Joseph Lubin case during a seminar. This attack by Consensys could prove to be bad news for the industry.

Given that companies like Ripple have significant potential to win the case, the evidence and resources available to the SEC to counter the Consensys attack appear much greater.