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Crypto News Today- SEC Allegations Regarding MetaMask Termed ‘Absurd’ by Consensys CEO

sevval10/05/20241 Mins read332

SEC Allegations Regarding MetaMask Termed ‘Absurd’ by Consensys CEO

Crypto News– During an event hosted by the Financial Times, Consensys’ founder and CEO Joseph Lubin vehemently dismissed the Securities and Exchange Commission’s (SEC) allegations against Consensys’ wallet as preposterous. He emphasized that the SEC’s claim that Consensys’ Metamask wallet functions as a broker-dealer is utterly unfounded.

Table of Contents

In April, Consensys received a Wells notice from the SEC, indicating potential enforcement action. Lubin expressed disbelief that the SEC views Metamask as a broker-dealer, given its primary function as a wallet for cryptocurrency transactions.

Metamask, partly backed by banking giant JPMorgan, is highly popular among crypto investors, particularly those engaged in decentralized finance (DeFi). Consensys estimates that there are approximately 30 million active DeFi users worldwide.

Preemptive Action

Rather than waiting for the SEC to initiate enforcement action, Consensys took proactive measures by recently announcing its lawsuit against the regulator.

Filed in Texas, the lawsuit accuses the SEC of attempting to assert control over the future of cryptocurrency through its actions.

Consensys firmly asserted, The SEC has no authority—nor should it—to regulate global, peer-to-peer computer networks.

Furthermore, Consensys raised concerns about the SEC’s classification of Ether as a security without transparently communicating this determination.

FAQs

What does Consensys CEO think of the SEC’s allegations about MetaMask?

Consensys CEO believes that the SEC’s allegations regarding MetaMask are “absurd,” indicating disagreement with the regulatory body’s stance.

How did Consensys respond to the SEC’s allegations?

Consensys responded by criticizing the SEC’s claims and asserting that the regulatory body lacks the authority to regulate global, peer-to-peer computer networks like MetaMask.

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sevval

Şevval has been actively writing since 2022 and is a third-year mathematics student at Ankara University. Her interest in writing is shaped particularly around innovative technologies such as Web3, artificial intelligence, and blockchain. She closely follows developments in these fields and aims to convey complex topics to readers in a clear and engaging manner. She enjoys combining her mathematical knowledge with technology to create content and strives to raise awareness about the digital world of the future.