Quick take:
The SEC is seeking to regulate MetaMask and Consensys filed its own lawsuit to put a stop to the SEC’s unlawful actions.
The SEC’s actions are at odds with the authority granted to it by Congress, and risk massive harm to U.S innovation.
Unfortunately, the Securities and Exchange Commission (SEC), led by Chair Gary Gensler, has been arbitrarily and unlawfully attempting to expand its jurisdiction to include the regulation of web3 technologies and related technology platforms, creating significant roadblocks to U.S. leadership in their development and implementation. This strategy has been the cornerstone of the current administration’s anti-crypto agenda.
“SEC Chair Gary Gensler’s crusade against Ethereum is far from over”
The SEC’s actions are at odds with the authority granted to it by Congress, and risk massive harm to the U.S. Why? Because frankly, the SEC should regulate the finance sector, not technology, and not blockchain technologies.
Years of ongoing efforts to enact a pro-innovation public policy framework have helped the U.S. emerge as a technological superpower, home to the world’s five largest technology companies. But that successful past does not guarantee a bright future, and now America’s technological leadership is under threat from misguided and overzealous Washington D.C. regulators.
The technological potential of blockchain cannot be realized without the appropriate infrastructure for accessing it. Imagine if a government agency led by unelected officials had shut down U.S. gas stations in the early 1900’s, stopping drivers from acquiring gasoline for their cars right at the time that the automotive industry was taking off – the economic impact would have been grave. Gas stations are a platform for acquiring fuel just as software is a much-needed platform for accessing decentralized applications. For example, the MetaMask platform created by Consensys is the leading self-custodial wallet for over 100 million users annually, providing everything users need to manage their identity, digital assets and to explore web3 in the safest possible way. The SEC is seeking to regulate MetaMask in a dubious enforcement action. But Consensys is not shying away from a legal fight, and filed its own lawsuit to put a stop to the SEC’s unlawful actions.
“SEC sues MetaMask developer Consensys as it extends legal crusade against crypto industry”
It’s not just Consensys that the SEC is embroiled in a fight with. In recent months, much of the industry – including Coinbase, Ripple, the Blockchain Association, and the Crypto Freedom Alliance of Texas – has fought back against the SEC. And with an election looming, business has the opportunity to rethink how political candidates will approach policy solutions. Major players in the industry are doing just that. Marc Andreessen, Ben Horowitz, and the Winklevoss twins – are now supporting candidates who are pledging to roll back the current Administration’s antagonizing approach toward crypto.
Voters care about what candidates’ stance on crypto and blockchain is. They care because this is a highly important issue.
“One-Third of U.S. Voters Say They'll Weigh Candidates' Crypto Views Before Voting: Poll”
With BlackRock, Franklin Templeton, Nike, Adidas, Publicis, and Gucci just some of the many businesses building web3 software applications, there is clear demand for blockchain growing into an industry in its own right. It is surely better that this industry is supported and underpinned by software built in the U.S. rather than other countries with different approaches to rule of law and control over networks. As China is promoting blockchain technologies and showing new signs of openness towards cryptocurrencies, the U.S is at risk of squandering a clear opportunity to become the global leader in web3.
The SEC must not be allowed to stop the U.S. in delivering on its web3 potential.
Read more about blockchain, Consensys’ litigation, and the SEC’s actions here.