Coinbase and Uniswap CEOs, among others, are standing with Consensys as it fights to have the SEC recognize Ethereum as not a security.
After Thursday’s preemptive strike by the Ethereum giant against the SEC, crypto industry heavyweights are rallying behind Consensys.
The creators of the MetaMask cryptocurrency wallet, Consensys, have taken legal action against the SEC, claiming that the agency is attempting to “seize control over the future of cryptocurrency” and is going too far in its efforts to regulate Ethereum. (Consensys is one of twenty-two private companies that have invested in Decrypt.) The SEC has not publicly announced its intention to regulate Ethereum as a security, despite the company’s claims to the contrary.
Yesterday, the CEO and founder of Uniswap took to Twitter to express gratitude to the founder of Consensys and the rest of the team for standing up and protecting our industry. “Enough with the intrusion and threats.”
Binance, Kraken, Uniswap, and Coinbase are just a few of the crypto industry heavy hitters that the SEC has sued on multiple occasions, thus prolonging their tumultuous relationship with the sector. Thus, key players in the field resorted to Crypto Twitter to convey their elation at this turn of events.
This month, the decentralized exchange Uniswap was served with a Wells notice by the SEC, which accused it of violating securities laws. When the SEC intends to take enforcement action, such as suing, it will send a letter to the person or company in question, known as a Wells notice.
After an extensive investigation into Ethereum, the network’s switch to proof-of-stake following the merger, and the Metamask crypto wallet in particular, Consensys disclosed in its own lawsuit that it had also obtained a Wells notice from the SEC.
To counter the SEC’s assertions, Consensys has filed a preemptive lawsuit in the hopes of having the court rule that Ethereum is not a security. Not only Coinbase, but other industry players have also tried this strategy recently.
There are ongoing legal disputes between the San Francisco crypto exchange and the SEC over the purported sale of unregistered securities. Paul Grewal, chief legal officer of Coinbase, took to Twitter after the Consensys announcement to share his thoughts.