SEC sues crypto company Consensys amid ongoing industry crackdown.
- The SEC on Friday filed sued against blockchain software company Consensys.
- The company was accused by the regulator of selling securities and operating as an unregistered broker through its MetaMask digital asset wallet.
- This year, the SEC has intensely scrutinized crypto companies concentrating on ethereum and decentralized finance.
The SEC has included crypto firm Consensys on its list of targets as part of its ongoing industry-wide crackdown.
On Friday, the SEC filed a lawsuit against Consensys in federal court in Brooklyn, accusing the company of selling securities and acting as an unregistered broker through its MetaMask digital asset wallet.
The court filing alleges that Consensys violated federal securities laws by not registering as a broker and not registering the offer and sale of certain securities.
In April, Consensys, a 10-year-old blockchain software provider, filed a lawsuit against the SEC, accusing the regulator of overreach. The lawsuit followed three subpoenas issued in the previous year, as well as a Wells notice from the SEC that claimed Consensys was violating federal securities laws.
The SEC has taken enforcement actions against various crypto firms that operate in the ethereum and decentralized finance space, including ShapeShift, TradeStation, and Uniswap. Additionally, it is reported that the agency is investigating the Ethereum Foundation.
Recently, Consensys declared victory in its battle with the SEC.
The SEC's Enforcement Division informed us that it has ended its investigation into Ethereum 2.0 and will not take any enforcement action against Consensys, as stated in a company announcement on June 18.
The SEC's action is part of an "anti-crypto agenda," according to Consensys.
"The SEC's attempt to expand its jurisdiction via lawsuit by redefining well-established legal standards and regulating software interfaces like MetaMask is a clear example of its regulatory overreach, the company stated."
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