Ethereum & Consensys vs SEC – An ‘unlawful power grab’ or a ‘cover-up?’

, a blockchain software giant, recently made news. It did so by taking a bold step and initiating legal action against the United States’s SEC and its five commissioners.“I never expected to one day be suing the SEC, but here we are. We’ve sued the SEC in our home state of Texas to defend Ether and the Ethereum network from Chair Gensler’s unlawful power grab.”“It’s really time they saw the light of day because these are important critical issues for our industry.

According to the exec, the SEC is not only targeting Consensys’s product – Metamask, but also their finance team. They are doing so by asking about the sales of Ether and Ethereum developers.While highlighting the fundamental differences between proof of work and proof of stake mechanisms, Consensys has consistently refuted the SEC’s potential theory that staking turns Ether into a security.

“There’s really no reason to treat them differently, it’s arbitrary. So, I think that’s one of the things we’ll probably point to, as showing that the SEC really has no basis here.”, a former Ethereum advisor, believes that Ethereum has functioned as a centralized entity since its ICO and thus, warrants classification as a security.

Ergo, Brookover is optimistic that a successful outcome in the lawsuit would provide much-needed clarity to the regulatory uncertainty surrounding cryptocurrencies. “If we’re successful, there’s going to be some clarity on how it applies to the digital assets, that would be beneficial for the industry at large.”Ishika is a graduate of Political Science from the University of Delhi. From writing content as a hobby to now pursuing it as a professional career, she has been living and breathing content all her life. Her interests lie in making sure articles are very digestible to a common reader, despite all its technicalities and jargons.

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