The blockchain developer believes that the SEC’s classification of ETH as a security is wrong and has criticized the regulatory body’s approach as “reckless.” They argue that the SEC’s shifting views on blockchain technology mischaracterize it and hinder innovation, rather than recognizing its potential as a breakthrough technology. Consensys, in a 34-page legal document released on April 25, expressed concerns that the SEC’s enforcement actions could undermine Congress’s efforts in establishing stablecoin policy and impede technological progress beyond U.S. borders. The company labeled the SEC’s regulatory actions as “aggressive overreach” that extends beyond domestic capital markets and contradicts the watchdog’s original mandate.
The lawsuit filed by Consensys is a response to a Wells Notice issued by the SEC earlier in the month, which indicated potential allegations against MetaMask for operating as an unregistered broker-dealer. Moreover, the industry is rallying to challenge a probe into the Ethereum Foundation, a non-profit organization dedicated to enhancing the ETH ecosystem.