Consensys, a company led by Joe Lubin and specializing in Ethereum development, has taken legal action against the U.S. Securities and Exchange Commission (SEC) for what it deems to be excessive regulation of the Ethereum blockchain. In a statement on social media platform X, Lubin emphasized the importance of preserving access to ether and the Ethereum blockchain in the U.S. and stated that they are fighting back against the SEC’s regulatory overreach. Consensys argues that the SEC’s reckless approach is causing chaos for developers, market participants, institutions, and nations that rely on Ethereum. They also point out that the SEC’s jurisdiction should only cover securities and that ether should not be treated as such. Consensys strongly believes that the SEC should not have the power to expand its jurisdiction to regulate the future of the Internet. They highlight the significance of ether for the technological development of various non-financial applications in sectors such as healthcare, energy, transport, media, and agriculture. The SEC’s approach, according to Consensys, would stifle innovation and require unnecessary oversight and approval for non-financial platforms. This lawsuit by Consensys follows a similar move by Coinbase, who sued the SEC in March to establish clear guidelines for the cryptocurrency sector. Coinbase criticized the SEC for its lack of formal rulemaking and argued that the absence of specific rules has created regulatory uncertainty.
