SEC Accuses Consensys of Operating as an Unregistered Securities Broker

MetaMask Wallet in the Spotlight

The Securities and Exchange Commission (SEC) has filed a lawsuit against Consensys, the company behind the popular MetaMask wallet. The SEC alleges that Consensys violated federal laws by acting as an unregistered securities broker through its MetaMask Swaps and Staking services.

According to the SEC, Consensys has collected over $250 million in fees by offering unregistered securities and acting as an unregistered broker. The SEC also claims that Consensys engaged in the sale of securities for crypto staking protocols Lido and Rocket Pool.

Consensys Responds

Consensys has pushed back against the SEC’s accusations, claiming that the agency is overreaching its authority. The company argues that MetaMask is a software interface and not subject to SEC regulation.

Ethereum Investigation Ends

Earlier this year, the SEC investigated whether the Ethereum platform was a security. However, Consensys recently received notice that the investigation had been closed without any enforcement action.

Impact on the Crypto Industry

The SEC’s lawsuit against Consensys is a significant development in the regulation of the cryptocurrency industry. It remains to be seen how the case will affect the use of MetaMask and other crypto-related services.