The U.S. SEC has intensified its regulatory efforts by suing ConsenSys, the developer of MetaMask, for alleged securities law violations related to its swaps and staking services.
This lawsuit, filed on June 28, 2024, underscores the SEC’s stance on classifying certain cryptocurrency activities as securities.
This development signals a pivotal moment in the ongoing debate over the regulation of cryptocurrency staking and associated tokens.
Swaps and Staking Alleged as Securities Law Violations
The U.S. Securities and Exchange Commission (SEC) has filed a lawsuit against ConsenSys, the developer of the cryptocurrency wallet MetaMask.
The lawsuit, filed on June 28, 2024, claims that the “swaps” and “staking” services provided by MetaMask violate securities laws.
Specifically, the SEC alleges that “since October 2020, ConsenSys has been operating as an unregistered broker through MetaMask Swaps to deal in crypto asset securities.”
Additionally, the complaint asserts that “since January 2023, ConsenSys has been engaged in the solicitation and sale of unregistered securities through the MetaMask Staking program, acting as an unregistered broker.”
These allegations are based on the classification of certain cryptocurrencies as securities, with the SEC noting that “ConsenSys collected over $250 million in fees through its activities as an unregistered broker.”
Mention of Lido and Rocket Pool
The lawsuit also references liquid staking services provided by Lido and Rocket Pool, which are integrated with MetaMask.
The SEC accuses ConsenSys of facilitating the offering and sale of thousands of unregistered securities through these services.
With Lido and Rocket Pool, users can deposit ETH and receive “stETH” or “rETH” as liquid staking tokens in return. The SEC has deemed these tokens as unregistered securities as well.
Earlier this month, on June 19, it was reported that the SEC determined ETH is not a security. However, services and tokens related to staking are still considered to be in violation of securities laws.
On May 24, all 19b-4 applications for Ethereum spot ETFs were approved, with documents being amended to revise language related to staking.
The SEC has a history of efforts to curb cryptocurrency staking services, with companies like ConsenSys contesting the SEC’s classification of staking as securities.
Consequently, there is significant attention on whether staking-related tokens and services fall under securities law violations.
>> For the latest news on virtual currency regulations, click here
-
Coinbase Sues SEC and FDIC, Criticizes Regulatory Attacks on the Crypto Industry
Coinbase has sued the SEC and FDIC for violating the Freedom of Information Act, criticizing their regulatory actions as attempts to weaken the crypto industry. Learn more about the ongoing legal battles and the impact on cryptocurrency regulations.
続きを見る