Joe Lubin is engaged in a battle with the Securities and Exchange Commission (SEC). He believes that the SEC is not only targeting Ethereum, but also trying to assert control over the future of the Internet. In response, Lubin has decided to fight back.
In 2015, Lubin was involved in the creation of Ethereum, a network that houses the world’s second largest cryptocurrency, ETH. Following this, Lubin founded Consensys with the goal of supporting the development and adoption of Ethereum, as well as creating software products on the network. However, in April, Consensys received a Wells Notice from the SEC, indicating that the company was facing a potential lawsuit. The SEC’s concern reportedly revolves around one of Consensys’ software products, MetaMask, a crypto wallet that allows users to store crypto coins and interact with Ethereum-based apps.
Consensys claims that the SEC notice accuses MetaMask of operating as an unregistered securities broker due to two specific features of the platform. The company has filed a lawsuit against the SEC, arguing that Ethereum does not fall under the jurisdiction of the SEC and describing the potential consequences if the SEC were to have its way.
While the SEC has not classified ETH itself as a security, Consensys alleges that the agency has been quietly investigating Ethereum with the intention of reclassifying it as such. Consensys argues that this is unfair, pointing to previous statements by an SEC director categorizing ETH as a commodity and the Commodity Futures Trading Commission making a similar assertion.
Through the lawsuit, Consensys aims to challenge the SEC’s authority over Ethereum and encourage the crypto industry to push back against what it sees as excessive regulatory overreach. The SEC declined to comment on the specific claims made by Consensys, emphasizing the importance of compliance with securities laws in protecting investors and maintaining the integrity of financial markets.
