US SEC plans to impose a ban on Consensys activities

The US Securities and Exchange Commission (SEC) accused Consensys of providing unlicensed brokerage services through its Metamask Swaps platform, which facilitates cryptocurrency asset transactions for retail investors, since 2020. According to the regulator, Consensys attracts investors, provides investment recommendations, processes investor orders and processes client assets without the required registration. This allowed the company to earn more than $250 million.

In addition, the department claims that since 2023, Consensys has been offering and selling unregistered securities through the Metamask Staking platform, including investment contracts under the Lido and Rocket Pool staking programs. These activities, according to the SEC, deprived investors of key protections under U.S. federal securities laws, including transparency and disclosure of conflicts of interest. The regulator intends to seek a ban on Consensys until the end of the trial to prevent further violations of the rules. The regulator also wants the company to pay a fine and compensate for losses incurred by investors.

The regulator intends to seek a ban on Consensys until the end of the trial to prevent further violations of the rules. The regulator also wants the company to pay a fine and compensate for losses incurred by investors. Previously, Consensys filed a lawsuit against the SEC due to the fact that in 2023, the regulator’s director of enforcement, Gurbir Grewal, authorized an investigation into Ethereum 2.0.