SEC sues Ethereum company Consensys, expanding industry-wide crackdown | Wilnesh News

Cryptocurrency company Consensys has been added to the SEC’s target list as regulators continue their crackdown across the industry.

The U.S. Securities and Exchange Commission sued Consensys on Friday in federal court in Brooklyn, New York, accusing the company of “engaging in the issuance and sale of securities” and “acting as an unregistered broker” through its digital asset wallet called MetaMask.

“Consensys violated federal securities laws by failing to register as a broker and to register the offer and sale of certain securities.” Court filing claim.

In April this year, Consensys, which provides blockchain software, tried to preempt the SEC’s action through its own lawsuit, accusing the regulator of overstepping its authority. The 10-year-old company said its lawsuit follows three subpoenas last year and a Wells Notice from the SEC claiming Consensys violated federal securities laws.

So far this year, the SEC has issued notices to Wells, filed lawsuits or reached settlements with a series of cryptocurrency companies focused on Ethereum and decentralized finance, including ShapeShift, TradeStation and Uniswap. The agency also It is said Investigate the Ethereum Foundation.

Less than two weeks ago, Consensys declared victory in its battle with the SEC.

“The SEC Enforcement Division informed us that it is closing its investigation into Ethereum 2.0 and will not pursue enforcement action against Consensys,” the company wrote in a statement. June 18.

Consensys said in an emailed statement on Friday that the action was part of the SEC’s “anti-encryption agenda.”

“This is just the latest example of its regulatory overreach — a clear attempt to redefine well-established legal standards and expand the SEC’s jurisdiction through litigation,” the company said. “We are confident in our position that the SEC has not yet been granted regulatory The power of software interfaces such as MetaMask.”