Crypto firm Consensys has filed a lawsuit against the US Securities and Exchange Commission (SEC) regarding the regulation of the Ethereum blockchain.
The lawsuit, filed in Texas federal court, accuses the SEC of attempting to assert control over the future of cryptocurrency by targeting Ether as a security.
Consensys warns that such actions could halt innovation in the US crypto space and disrupt the Ethereum network.
The company alleges that the SEC's enforcement actions, including a Wells notice related to its MetaMask products, are part of a broader effort to regulate Ether as a security. It is seeking relief from the court to declare Ether as not a security under the Securities Act, aiming to protect the interests of Ethereum developers, institutions, and market participants.
The legal move follows reports of the SEC's efforts to deny Ethereum ETF proposals and ongoing legal battles with major crypto firms like Coinbase and Ripple.