SEC sued over Ethereum, crypto firm asks court to state token is not a security

Consensys, a major backer of the Ethereum blockchain, sued the SEC in Texas federal court, asking the court to rule that Ether is not a security and to head off an expected SEC lawsuit over MetaMask's staking feature. The 34-page complaint argues that the SEC's claimed authority over Ethereum is illegal and would halt use of the blockchain in the United States. According to the complaint, the SEC issued a Wells Notice earlier this month and told Consensys in a phone call that MetaMask was operating as an unlicensed broker dealer. Consensys founder Joe Lubin told Fortune that the theory that staking turned Ethereum into a security is "preposterous," while the SEC did not immediately respond to a request for comment.