Consensys has sued the Securities and Exchange Commission in support of the Ethereum framework. The company wants to make sure that Ethereum remains a vital and dynamic blockchain platform. They believe Ethereum is the foundation for advanced Web3 innovations, state-of-the art technologies, and out-of-the-box products.
The complaint points out that the Securities and Exchange Commission acts unlawfully against Consensys. Consensys cites the latest incidents as the best examples of the SEC’s aggressive and illegal attitude. The people at the helm of the SEC fear that the SEC will destroy value for trillions of ether holders.
According to the highest levels of Consensys management, the SEC decision will suspend the Ethereum blockchain’s proliferation in the United States, potentially impeding the technological revolution of the internet age.
As stated by the CEO of Consensys, their legal action against SEO will protect access for stakeholders, including market participants, developers, and crypto organizations, to one of the largest blockchains in the world. The aforementioned case once more drew attention to the fraudulent methodology employed by the Securities and Exchange Commission. The legal dispute between Consensys and the SEC demonstrates that regulatory certainty is an absolute necessity for web3 technologies and technology-driven economies in development.
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Consensys has initiated legal proceedings in the Federal Court to obtain affirmation that the Securities and Exchange Commission lacks legal jurisdiction over ether, Ethereum software interfaces, and the Ethereum blockchain. Consensys contends that digital products that enable Ethereum users to conduct transactions cannot be considered security.
Furthermore, they stated that the SEC lacks the legal authority to regulate the evolution of internet technology. Consensys has stated that Ether is an essential component for the development of Ethereum-enabled applications. Ethereum enables applications in the transportation, energy, agriculture, healthcare, and media industries, among others.
Due to the SEC’s regressive stance, developers living in the USA will find it difficult to build on Ethereum. It is feared that the SEC’s ruling will halt ether-based US transactions, and complying with the SEC’s directions will be impossible given the current conditions. MetaMask Wallet, Consensys’ flagship product, provides customers with the tools they need to explore web3, such as controlling their identity and transferring and receiving crypto. The new SEC rule will halt the manufacturing of conventional and next-generation applications such as MetaMask Wallet.
The current decision comes at a time when there are discussions regarding Ethereum’s potential as a driver of the American economy in the coming years. It jeopardizes the United States’ potential to use blockchain technology for countless revolutionary technological wonders.
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Consensys’s legal complaint seeks a declaration that Ether is not a security. They are seeking another order preventing the Securities and Exchange Commission from conducting an investigation. Consensys Software filed its complaint in the Texas Northern District Court. Consensys has led technology breakthroughs and uniqueness in the web3 sector since its inception in 2014.
