📢 Gate Square #MBG Posting Challenge# is Live— Post for MBG Rewards!
Want a share of 1,000 MBG? Get involved now—show your insights and real participation to become an MBG promoter!
💰 20 top posts will each win 50 MBG!
How to Participate:
1️⃣ Research the MBG project
Share your in-depth views on MBG’s fundamentals, community governance, development goals, and tokenomics, etc.
2️⃣ Join and share your real experience
Take part in MBG activities (CandyDrop, Launchpool, or spot trading), and post your screenshots, earnings, or step-by-step tutorials. Content can include profits, beginner-friendl
SEC sues Consensys: MetaMask and Lido questioned, ETH may be classified as a security.
SEC sues Consensys, Web3 industry faces new challenges
While paying attention to the developments of Ethereum ETFs in the cryptocurrency space, the U.S. Securities and Exchange Commission (SEC) suddenly took action and filed a lawsuit against the blockchain technology company Consensys. The SEC accused Consensys's MetaMask of violating securities laws with its Swap and staking products, and classified the liquid staking tokens stETH and rETH from Lido and Rocket Pool as unregistered "securities."
This news has attracted widespread attention in the industry. Data shows that the sentiment indicators for Lido and Metamask have both seen a significant decline. Lido dropped from 21 to a low of -9, while Metamask plummeted from 33 to -69, with the sentiment shifting from relatively positive to very negative.
The market also reacted to this news. On the day the SEC announced the lawsuit, Lido's price fell from a high of $2.43 to a low of $1.86, a decline of over 23%.
As one of the most widely used wallets in the Web3 industry and an important participant in the Ethereum staking space, the legal challenges faced by Metamask and Lido will undoubtedly impact their development prospects and the entire industry.
The legal dispute between Consensys and the SEC has a long history
On April 25, Consensys filed a lawsuit in the Northern District Court of Texas against the SEC's attempt to classify Ethereum (ETH) as a security. Consensys believes that ETH does not possess the attributes of a security, and the SEC had previously stated that ETH is not a security and is not within its jurisdiction.
Origin of the Event
On April 10, 2024, the SEC sent a "Wells Notice" to Consensys, indicating that it would recommend that the commission take enforcement action against Consensys on the grounds that its MetaMask Swaps and MetaMask Staking products violated federal securities laws.
Litigation Focus
The main argument of the SEC is that the features related to MetaMask involve the trading of unregistered securities, thus violating federal securities laws. Consensys, on the other hand, argues that Ethereum should not be regarded as a security, and the functionalities of MetaMask do not involve securities trading.
The SEC's lawsuits are usually based on the following aspects:
Potential Impact
If the court rules that Ethereum is a security, it will have a significant impact on exchanges and institutions holding large amounts of Ethereum, and it may also affect the approval process for Ethereum ETFs.
The broad impacts that may arise from this lawsuit include:
Intensification of Contradictions
In the early litigation, Consensys questioned the SEC. The SEC provided a vague response on June 18, stating that it did not intend to recommend enforcement actions against Consensys, but this does not mean that the investigation is abandoned.
Legal Advisor's Perspective
Consensys' legal advisor Laura Brookover stated that the entire investigation (not just against Consensys) has concluded. However, there are also opposing views that the SEC's statement does not explicitly indicate that the investigation has "ended".
Industry Impact
Currently, the SEC's lawsuit against Consensys seems to be a done deal. Industry insiders are more concerned about whether this will affect liquidity staking projects like Lido and the final approval of the ETH ETF. Laura believes that the SEC's investigation into these activities falls under a separate independent investigation.
Summary
Although more details about this lawsuit have not yet been disclosed, it is certain that the integration of Web3 with the real world is becoming increasingly close, and relevant policies and regulations are finding it difficult to keep Web3 at bay.
The conflict between the SEC and Consensys reflects the complexities of the cryptocurrency industry in terms of law and regulation. Finding a balance between innovation and compliance will be a significant challenge for the entire industry. We look forward to the final outcome of this case and hope it can provide valuable insights for the healthy development of the industry.