Blockchain infrastructure service provider ConsenSys has filed another response over the claims from the US Securities and Exchange Commission (SEC) that MetaMask is violating Federal laws over its product offerings. The Joe Lubin-led firm revealed that the claims are not what demands advocacy as a general matter. The firm revealed its position on the matter, highlighting confidence in its product.
The ConsenSys vs US SEC Brawl – New Realities
Over the past year, the markets regulator has either sent Wells Notices or sued stablecoin firms, exchanges and even Non-Fungible Token (NFT) outfits. Notably, the US SEC initially sued the MetaMask developer in June as it claimed its Swaps and staking services are unlawful.
Many considers the move laughable as Joe Lubin had earlier pointed out the supposed improving relationship between crypto firms and regulators.
In its latest filing, ConsenSys said the claims of the markets regulator must fail in order to preserve the future of technology. Back in September, ConsenSys counter sued the regulator over the status of Ethereum.
However, the United States District Court for the Northern District of Texas dismissed the case. According to Judge Reed O’Connor, the presiding judge, the claims concerning Ethereum classification and the regulatory approach to MetaMask were not ripe for judicial review.
Therefore, it marked the end of the litigation initiated by the blockchain firm. In the current pushback on MetaMask, ConsenSys said the product is a software that embodies the true promise of blockchain technology. It argued that MetaMask is a software that facilitates decentralized interaction with no need for middle men.
ConsenSys said that the regulator is exercising authority over MetaMask is a disruption of the core crypto architecture.
SEC Issues Wells Notice to Crypto Firms
Recently, some other crypto-associated firms have equally received Wells Notice from the SEC. Earlier this week, blockchain protocol Immutable received a Wells Notice from the US SEC. The regulator is claiming that Immutable might have violated Federal Securities laws over its native token IMX.
“Instead, in our very first interaction with the SEC, we were told a Wells notice would be issued to the company within the week. We then received it within hours,” Immutable wrote.
The firm is frustrated by the Wells Notice and has pledged to fight for its rights if required.
It is worth noting that while a Wells Notice is not an enforcement action from the regulator, however, it signals a potential investigation. Therefore, the SEC has no case against Immutable for now as well as OpenSea, Uniswap and Robinhood.
Godfrey Benjamin
Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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