Consensys Sues SEC, Challenges Ethereum Security Classification and $ETH ETF Block

Apr 25, 2024, 10:34 PM

A coalition led by Consensys and including other stakeholders in the blockchain industry has initiated legal action against the U.S. Securities and Exchange Commission (SEC), led by Gary Gensler. The lawsuit, filed in Texas, challenges the SEC's recent policies, which the plaintiffs argue unlawfully restrict the operations of blockchain technologies like Ethereum in the U.S. They contend that the SEC's stance that staking transforms Ethereum from a commodity to a security, thus justifying the block of $ETH spot ETFs, is baseless and threatens the development of the cryptocurrency sector. Key figures such as Consensys founder Joseph Lubin criticize the SEC's actions as politically motivated and anti-innovation, which could severely impact developers, investors, and users of blockchain technology. The lawsuit also defends principles such as the rule of law, fair notice, and due process.