The cryptocurrency industry has rightfully taken the SEC’s fight to the courts.

The cryptocurrency industry is embroiled in a battle with the U.S. Securities and Exchange Commission (SEC). But the fight has gone one step further, with Consensys, a major player in the Ethereum ecosystem, filing a lawsuit against the agency in a Texas federal court. Ethereum companies have asked the SEC to clarify that Ether is not a security. concise 34 page filing It calls for action by the SEC to illegally oversee Ethereum and an “unlawful seizure” of rights to ETH, as well as threats to completely destroy the U.S. Ethereum industry.

Consensys’ lawsuit could be designed to overshadow pending SEC action against the Ethereum ecosystem. For the past month and a half, there have been rumors that the SEC is investigating the Ethereum Foundation, whose employees have reportedly received subpoena requests. Either way, the Ethereum ecosystem will not play games with the SEC and seek to gain the same legitimacy that Bitcoin has gained in the eyes of regulators and the mainstream financial system recently.

Of course, the cryptocurrency industry doesn’t have to fight this battle with the SEC in court. Congress could have enacted fair laws by now. Additionally, as head of the SEC, Gary Gensler can approach cryptocurrencies in a balanced way that supports innovation while protecting investors. He could echo former SEC Chairman Jay Clayton’s words: Ethereum is not a security Because it is sufficiently decentralized. He may side with the Commodity Futures Trading Commission (CFTC), which views Ethereum as a commodity.

Instead, Gensler classified ETH as a security, despite a damning video from 2018 telling hedge funds that Ethereum was not a security. Since Gensler has chosen a strict approach to cryptocurrencies, the cryptocurrency industry will have no choice but to seek legal clarity from the court system, especially if Congress does not commit to finding a solution.

Legal battles are on the rise after the SEC lost high-profile cases in recent months, as the Justice Department proves to be a key check and balance in the fight between the SEC and cryptocurrencies. A judge said the SEC acted arbitrarily and capriciously when it rejected a Bitcoin ETF application. Since then, Gensler has not changed course. Instead, he took on leading cryptocurrency companies Coinbase and Uniswap, consistent with numerous subpoenas sent to companies and developers regarding their work with the Ethereum Foundation.

Gensler’s approach to cryptocurrencies appears to be an attempt to slow the overall growth of cryptocurrencies and ultimately lay the groundwork for rejecting pending applications for a spot Ethereum ETF. The SEC is expected to rule on the Ethereum ETF in May. This puts the institution in a tricky spot because if it rejects the Ethereum ETF, Fidelity, Blackrock, etc. could sue the SEC.

Consensys’ filing of the lawsuit in Texas is consistent with the cryptocurrency industry’s aggressive strategy to fight the SEC in the U.S. Court of Appeals for the 5th Circuit. More than any other court, Consensys and the broader cryptocurrency industry seem ready to take this to the Supreme Court. And it should be so. A lot awaits you. An aggressive approach seems necessary.

Consensys is fighting to ensure that Ethereum remains a vibrant and essential blockchain ecosystem where developers, market participants, and institutions can push the boundaries of what is possible on the world’s second-largest blockchain. What ConsenSys said is correct. The SEC should not be allowed to extend its own jurisdiction to include the Internet, which it attempted to do by declaring ETH a security.

There are numerous blockchain projects facing SEC action, including ShapeShift, Ripple, LBRY, Coinbase, Hex, Pulsechain, PulseX, and others, along with Consensys and the Ethereum ecosystem. Gensler’s SEC failed to provide the fledgling industry with clear rules to help entrepreneurs stay compliant.

Congress must act for the benefit of free enterprise, not against it. Cryptocurrencies have no choice but to seek clarity from the courts.

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