SEC Sues Consensys: MetaMask Accused of Operating as Unregistered Broker

The U.S. Securities and Exchange Commission (SEC) recently filed a lawsuit against Consensys, alleging that MetaMask, the digital wallet developed by founder Metamask, acts as an unregistered broker-dealer. According to the SEC, MetaMask's digital token conversion service and Ethereum staking services like Lido violate securities laws by not registering as securities. The lawsuit claims that tokens like stETH and rETH are considered unregistered securities under SEC guidelines.

Consensys responded strongly, criticizing the SEC's actions as part of an anti-crypto agenda and accusing the regulator of overreach. The company argued that the SEC's attempts to regulate software interfaces like MetaMask exceed its jurisdiction and vowed to continue its legal defense.

In parallel, the SEC has delayed the launch of Ethereum ($ETH ) ETFs by returning S-1 forms with comments to issuers, pushing back the expected launch date to later in July. This regulatory move adds to the ongoing tension between the SEC and the crypto industry, following Consensys' earlier legal actions seeking to define Ethereum's status and prevent regulatory overreach.

Despite these challenges, Ethereum's market price has shown relative stability, currently trading around $3,370. Analysts anticipate significant investor interest once Ethereum ETFs are approved, though regulatory hurdles continue to impact their rollout.