News Article Translation:
ConsenSys, the parent company of the popular cryptocurrency wallet Metamask, revealed that it has received a Wells Notice from the U.S. Securities and Exchange Commission (SEC), indicating the intention to take enforcement action against MetaMask for violating securities laws. In response, ConsenSys has filed a lawsuit against the SEC on Thursday.
Summary:
– ConsenSys, the parent company of Metamask, has filed a lawsuit against the SEC.
– ConsenSys claims that the SEC intends to classify Ethereum (ETH) as a security, and criticizes it as an “illegal seizure” of Ethereum.
– ConsenSys received a Wells Notice from the SEC on April 10, prompting the lawsuit.
– ConsenSys denies acting as a broker-dealer and argues that MetaMask is merely an interface without holding customer digital assets or executing transactions.
– ConsenSys cites the Commodity Futures Trading Commission’s classification of Ethereum as a commodity, not a security.
– It is unclear whether the SEC will formally file a lawsuit or resolve the issue with ConsenSys in a Texas court.
In a recent development, leading decentralized exchange Uniswap also confirmed receiving a Wells Notice from the SEC, potentially facing regulatory litigation. However, receiving a Wells Notice does not necessarily mean a lawsuit will be filed. The typical process includes a warning from the SEC, followed by 30 days for the accused entity to respond and present arguments to prove innocence, and finally, the SEC has six months to decide whether to file a lawsuit and take enforcement action.
Other companies that have received Wells Notices from the SEC include Ripple Labs, Coinbase, and Paxos. The probability of an SEC lawsuit is not low, especially in the cryptocurrency industry, where companies often proceed to civil litigation and ultimately opt for settlement.
The warning from the SEC may impact ConsenSys’ plans for token issuance. While Metamask previously stated that it had no immediate plans for token issuance, the SEC’s warning may further impede the company’s progress. Additionally, the SEC’s stance on Ethereum as a security could have broader implications for the cryptocurrency world and diminish the likelihood of a spot ETF approval this year. Further developments in this matter are worth monitoring.