The United States Securities and Exchange Commission has archived a lawsuit against Ethereum developer Consensys, alleging that the latter operates as an unregistered security broker through Metamask.
The US Securities and Exchange Commission has archived a lawsuit against Ethereum developer Consensys, alleging that the latter operates as an unregistered security broker through Metamask.
In its filing, the SEC claims the agency has deprived investors of “crucial protections” by failing to register as a broker-dealer.
In particular, the agency alleges that the Lido and Rocket Pool staking programs are securities because investors make an investment of the token in a common company with “a reasonable expectation of profits.”
Alex Dovbnya“Through its MetaMask Stake program, Consensys also acts as a broker by transacting Lido and Rocket Pool investment contracts on behalf of others. Consensys solicits potential investors, presents itself as a place to buy and sell the investment contracts, and recommends which of the two investment contracts will offer the greatest rewards,” the SEC said.
In addition to that, the SEC named Polygon (MATIC), Chiliz (CHZ), and other tokens as examples of unregistered securities.
Just days before the most recent lawsuit, the SEC announced it had dropped its investigation into Ethereum 2.0, which Consensys hailed as a major victory for developers. However, Consensys founder Joseph Lubin stressed that the fight for a “favorable regulatory environment” was far from over.
Alex DovbnyaAs reported by U.Todaythe famous Ethereum study took the SEC to court in April, accusing the regulator of trying to harm the Ethereum ecosystem. It sought an injunction preventing the agency from suing Consensys over MetaMask Swaps or Staking.
The price of Ethereum is down 2% in the last 24 hours, according to CoinGecko.
