Crypto firm Consensys filed a lawsuit against the SEC for trying to qualify Ethereum as a security.
Consensy asked the court to find that ETH is not a security.
Consensys, a major supporter of the Ethereum blockchain, has filed a lawsuit against the SEC in Texas federal court, Fourtune reports.
Consensys aims to avoid an SEC lawsuit against the company due to the features of its popular MetaMask wallet, but has also asked the court to determine that Ethereum is not a security.
In its lawsuit, Consensys claimed that the SEC's efforts on Ethereum are both illegal and a threat to blockchain technology more broadly.
“The SEC's illegal seizure of authority over ETH would spell disaster for the Ethereum network and Consensys.
“This would bring the use of the Ethereum blockchain in the United States to a halt and disrupt one of the internet's greatest innovations.”
According to Consensys, the SEC objects to MetaMask offering users the ability to stake Ethereum on its behalf.
In a statement to Fortune, Consensys founder Joe Lubin called the theory that staking is turning Ethereum from a commodity into a security “absurd and counterintuitive.”
In the statement, it was stated that the company also received a Wells notice from the SEC earlier this month.
*This is not investment advice.