Consensys sues the U.S. SEC, claiming that MetaMask services do not violate securities laws

ChainCatcher news, according to CoinDesk, Ethereum infrastructure development company Consensys has filed a lawsuit against the U.S. SEC, accusing it of "illegally seizing power" over Ethereum.

The company seeks a federal court declaration that Ethereum is not a security, and any investigation based on the idea that Ethereum is a security "would violate" ConsenSys's Fifth Amendment rights and the Administrative Procedure Act. It argues that MetaMask is not a broker under federal law, its staking services do not violate securities laws, and it seeks an injunction prohibiting the SEC from investigating or taking enforcement action related to MetaMask's exchange or staking features.

In the lawsuit filed Thursday against the SEC and all five of its commissioners, Consensys revealed that it received a Wells notice from the U.S. SEC on April 10, indicating that the SEC intends to take enforcement action against the company's MetaMask wallet product for violating securities laws. Consensys denies acting as a broker and states that the wallet "neither holds customers' digital assets nor executes any trading functions."