Consensys Files Lawsuit Against SEC to Clarify Ethereum’s (ETH) Status as a Security

  • The SEC recently sent Consensys a Wells notice regarding its MetaMask product.
  • The goal of Consensys is to maintain Ethereum’s standing as a commodity.
  • The company contests the SEC’s jurisdiction over virtual currencies.

Stay in the know on crypto by frequently visiting Crypto News Today

Prominent Ethereum developer Consensys has sued the U.S. Securities and Exchange Commission (SEC) for allegedly engaging in a “illegal seizure of authority” with reference to Ethereum (ETH).

CryptoCaster Quick Check:

The lawsuit is a major development in the ongoing conflict between regulators and cryptocurrency companies. It was filed in the District Court for the Northern District of Texas.

Consensys contests the classification of Ethereum

The question of whether Ethereum (ETH) qualifies as a security is at the center of the disagreement.


Based on this classification, Consensys claims that ETH shouldn’t be regarded as a security and challenges the SEC’s investigation into its MetaMask wallet product. According to the company, MetaMask, a popular wallet interface, does not function as a securities broker as defined by federal law.

The SEC recently sent Consensys a Wells notice, signaling that it intended to pursue enforcement action against the company for allegedly breaking securities laws with its MetaMask product. The company disputes these claims, claiming that MetaMask does not store customers’ digital assets or handle transactions—rather, it only acts as an interface.

Possible effects on the Ethereum Network

Consensys cautions that the Ethereum network and Consensys itself may suffer as a result of the SEC’s claim of control over Ethereum.

The company contends that the SEC’s actions go against previous declarations that Ethereum should be categorized as a commodity as opposed to a security. Consensys also raises concerns about the ramifications of the SEC’s new position and emphasizes the regulatory consensus that has shaped its business operations.


Consensys is joining other major players in the industry in pursuing legal action to stop the SEC from classifying certain cryptocurrencies or businesses as securities. The SEC has been closely monitoring the cryptocurrency market in recent months, focusing both on exchanges and individual companies.

The lawsuit against the U.S. SEC is a reflection of the increasing hostility between regulators and cryptocurrency companies, and its ramifications go beyond specific businesses to the larger crypto community.

The outcome of the legal dispute could have a big impact on how Ethereum and other cryptocurrencies are regulated in the future.

CryptoCaster™ steadfastly upholds its dedication to keeping our global audience well-informed about the ongoing adoption of blockchain technology, as well as the latest hurdles emerging from government-controlled fiat financial systems, banking conglomerates, and other major institutional entities. Our commitment extends to providing comprehensive updates and insights into how these developments affect the broader landscape of digital currencies, the potential regulatory impacts on blockchain innovations, and the evolving dynamics between traditional financial institutions and emerging cryptocurrency markets. By staying at the forefront of these critical issues, CryptoCaster™ aims to empower our audience with the knowledge needed to navigate the complex interplay of technology, regulation, and finance in the modern world. CRYPTOCASTER® - DECENTRALIZED FREEDOM! 

We hope you appreciated this article. Before you move on, I was hoping you would consider taking the step of supporting CryptoCaster’s journalism. 

From  Elon Musk, Larry Fink(BlackRock) to Jamie Dimon(JP Morgan Chase) a number of billionaire owners have a powerful hold on so much of the hidden agendas’ which eludes the public concerning the paradigm shift juxtaposed by cryptocurrency and web3 emerging technologies. CryptoCaster is different. We have no billionaire owner or shareholders to consider. Our journalistic efforts are produced to serve the public interest in crypto development and institutional disruptions – not profit motives.

And we avoid the trap that befalls much U.S. and global media – the tendency, born of a desire to please all sides, to engage in false equivalence in the name of neutrality and retail consumer protection. While fairness and transparency dictates everything we do, we know there is a right and a wrong position in the fight against fiat global banking interest and monetary reconstruction precipitated by the emerging crypto ecology.

When we report on issues like the FTX, Binance and Ripple crisis, we’re not afraid to name who or what is uncovered. And as a crypto sentinel, we’re able to provide a fresh, outsider perspective on the global monetary disruption – one so often missing from the insular American and European media bubble. 

Around the world, readers can access the CryptoCaster’s paywall-free journalism because of our unique reader-supported model. That’s because of people like you. Our readers keep us independent, beholden to no outside influence and accessible to everyone – whether they can afford to pay for news and information, or not.

We thankyou for the on-going support our readers have bestowed monetarily. If you have not considered supporting CryptoCaster, if you can, please consider supporting us just once from $1 or more of Bitcoin (satoshi) or Eth, and better yet, support us every month with a little more. Scroll further down this page to obtain CryptoCaster’s wallet addresses.

Thank you.

Kristin Steinbeck
Editor, CryptoCaster

Please Read Essential Disclaimer Information Here.
© 2024 Crypto Caster provides information. does not provide investment advice. Do your research before taking a market position on the purchase of cryptocurrency and other asset classes. Past performance of any asset is not indicative of future results. All rights reserved.

Contribute to CryptoCaster℠ Via Metamask or favorite wallet. Send Coin/Token to Addresses Provided Below.
Thank you!
BTC – bc1qgdnd752esyl4jv6nhz3ypuzwa6wav9wuzaeg9g
ETH – 0x7D8D76E60bFF59c5295Aa1b39D651f6735D6413D
MATIC – 0x7D8D76E60bFF59c5295Aa1b39D651f6735D6413D
LITECOIN – ltc1qxsgp5fykl0007hnwgl93zr9vngwd2jxwlddvqt


You may also like