Consensys has argued that Ethereum is not a security but a global computing platform and its DeFi platforms are not securities brokers.
The United States Securities and Exchange Commission (SEC) would eventually be sued for attempting to classify Ethereum (ETH) as a security and not approving the trading of spot Ether ETFs. With the official deadline for the spot Ethereum ETF decision on the horizon, between May 23 and 24, experts have highlighted that the regulatory agency will likely reject the spot Ether ETF.
According to most experts, the US SEC will argue that Ether futures ETF has had limited data compared to its Bitcoin counterpart.
As Coinspeaker previously reported, the US SEC has already begun looking into Ethereum-based DeFi projects led by Wells notice to Uniswap (UNI).
Nonetheless, the Ethereum community believes Ethereum is a commodity and not a security, and the spot Ether ETF should be approved without hesitation.
Consensys Fights for Ethereum Community Against US SEC
In a bid to protect the future of web3 space, Consensys Software Inc., a veteran blockchain and software company, filed a lawsuit against the US SEC on Thursday, April 25 in the US District Court for the Northern District of Texas. At the core of the Consensys litigation are three critical issues that are geared toward ensuring the Ethereum network remains a vibrant and indispensable blockchain.
According to Consensys, Ethereum is a global computing platform and not an investment scheme. As a result, Ethereum cannot be classified as a security but instead should be viewed as a commodity as reaffirmed by the Commodity Futures and Trading Commission (CFTC).
We took this step for two very basic reasons:
(1) the SEC should not be allowed to arbitrarily expand its jurisdiction to include regulating the future of the internet by wrongly labeling ETH a security; and
(2) the SEC’s reckless approach is bringing chaos to developers,…
— Consensys (@Consensys) April 25, 2024
Consensys further highlighted that web3 platforms that allow people to transact on their own using Ethereum, like Uniswap, are not securities brokers. As such, the US SEC does not have jurisdiction over the Web3 platform by any means.
“The SEC’s unlawful power grab threatens to undermine America’s position as a leader of the next generation of the internet,” Consensys argued.
According to Consensys, 29 percent of the 190k direct employees in the cryptocurrency industry are based in the United States. With the US SEC having declared Etfee as not a security in 2018, as observed through Hinman’s statements, Consensys has urged the jury to weigh on its facts.
Market Picture
Ethereum network remains the undisputed leader in the web3 ecosystem, with a stablecoins market cap of about $83 billion and a total value locked of around $54 billion. With the emergence of new smart contract-based blockchains, the Ethereum network has facilitated more than $268 billion in bridged TVL over the past few years.
As of this writing, Ethereum’s price has exchanged around $3,142, down approximately 10 percent in the last two weeks. Ethereum bulls are eyeing to retest the ATH, which will be triggered by a reversal in Bitcoin dominance.
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