[NEWS] US ConsenSys sues SEC over Ethereum securitization decision

Consensys, a US blockchain company known for developing Metamask, announced on the 25th that it has filed a lawsuit against the SEC (US Securities and Exchange Commission) over the securities nature of Ethereum (ETH). It said that this is a necessary measure to prevent the SEC's illegal power grab.

In its announcement, Consensys argued that "the SEC's threat to regulate Ethereum as a security threatens the ability of the United States to regulate Ethereum and similar blockchain technologies." It continued, "The impact goes beyond digital asset trading, jeopardizing the future of new innovations, services, and American jobs that this next generation Internet will unleash."

Consensys stated that Ethereum is "a global computer platform, not an investment scheme," and claims that it is a commodity, as confirmed by the CFTC (Commodity Futures Trading Commission).

Next, it emphasized that "applications that allow people to trade independently using Ethereum are not securities brokers," and that there is no need for regulation by the SEC.

He explained that the SEC's illegal power grab threatens to undermine the United States' position as a leader in the next generation of the Internet, and that it opens the door for other countries and adversaries to control the development of an economy built on the technological evolution of the Internet. This is not what the United States wants for the technology industry, but the SEC is leading the way.

The reason for suing the SEC was that "the SEC does not have the authority to regulate global P2P networks, and should not do so. The SEC's aggressive and excessive actions against products, software, and new technology platforms are unlawful."

Furthermore, he said that if the SEC's claims were accepted, "it would weaken Ethereum," and that this could have a negative impact not only on developers and market participants, but also on the United States as a whole. Taking these factors into consideration, he concluded that it is wrong to change legal standards and authority in order to strengthen Ethereum oversight.

Is it also likely to affect the realization of an Ethereum spot ETF?

The background to ConsenSys' lawsuit this time is that the company received a Wells Notice from the SEC on the 10th of this month. A Wells Notice is a notice issued by the SEC to companies or individuals in advance that it will take legal action. Various cryptocurrency companies have received Wells Notices to date.

Currently, Ethereum is attracting attention over the approval of a spot ETF. One of the key factors in determining whether or not it will be approved is the SEC's decision on Ethereum's status as a security, but depending on the outcome of this lawsuit, it may also affect the realization of a spot ETF. In the past, Grayscale, a major cryptocurrency management company, won a lawsuit over the application to convert a Bitcoin investment trust into an ETF, which had a major impact on the creation of a Bitcoin spot ETF.

It is unclear whether the outcome of this lawsuit will lead to the approval of an Ethereum spot ETF, but depending on the outcome, the SEC may be forced to change its policy, so attention is expected to be focused on the situation.

Reference:Announcement
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