ConsenSys Sues SEC, Argues ETH is Not a Security

IconCrypto News Terminal25 Apr, 2024

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ConsenSys Sues SEC, Argues ETH is Not a Security

ConsenSys, the company behind Ethereum infrastructure development, has filed a lawsuit against the U.S. Securities and Exchange Commission (SEC). The lawsuit argues that Ether (ETH), the native cryptocurrency of the Ethereum blockchain, is not a security and should not be subject to SEC regulation. This move by ConsenSys is a significant development in the ongoing debate over the regulatory status of cryptocurrencies. The SEC has previously taken the position that many cryptocurrencies, including ETH, are securities and therefore subject to its oversight. However, ConsenSys argues that ETH is a commodity and should not be regulated as a security. Previously on May 11th, 2023: ConsenSys had previously filed a petition with the SEC for a spot Ether exchange-traded fund (ETF), pushing back against the SEC’s concerns about potential fraud and manipulation in Ethereum’s proof-of-stake (PoS) consensus algorithm.

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