MetaMask’s parent company ConsenSys was officially charged by the U.S. Securities and Exchange Commission (SEC) on Friday. The SEC accused MetaMask’s Swap and staking products of violating securities laws, specifically mentioning Lido and Rocket Pool’s liquidity staking tokens stETH and rETH as unregistered “securities.”
Prior to the lawsuit, the SEC had issued a Wells notice to ConsenSys, warning that MetaMask was operating as an unlicensed broker-dealer. In response to the SEC’s allegations, ConsenSys argued against SEC’s overreach, stating that SEC lacks authority to regulate software interfaces like MetaMask.
Following the SEC’s filing, Lido (LDO) plummeted nearly 18%, while Rocket Pool (RPL) fell about 6%. ConsenSys has contested the charges, emphasizing that SEC’s actions could significantly impact the broader crypto ecosystem.
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