ConsenSys, an Ethereum (CRYPTO:ETH) developer, has filed a lawsuit against the U.S. Securities and Exchange Commission (SEC) over what it perceives as an "unlawful seizure of authority" regarding Ethereum.
The lawsuit seeks a federal court declaration that ETH is not a security and challenges the SEC's investigation of ConsenSys related to its MetaMask wallet product.
ConsenSys denies acting as a broker and argues that MetaMask is merely an interface, not a brokerage service.
The lawsuit alleges that the SEC's actions contradict its previous statements on Ethereum's classification as a commodity, posing potential risks to the Ethereum network and ConsenSys.