According to Bloomberg, Consensys, a crypto software company, has filed a lawsuit in a federal court in Texas. The firm argues that if the Securities and Exchange Commission (SEC) is allowed to exert authority over Ethereum and its digital token Ether, it could potentially halt the blockchain, thereby 'crippling one of the internet’s greatest innovations.' This lawsuit comes at a time when Consensys is under increasing scrutiny.
In the lawsuit, Consensys is seeking a court ruling that Ether is not a security and therefore should not fall under the jurisdiction of the SEC. The company was founded by Joseph Lubin, who is also a co-founder of Ethereum. The SEC, however, has declined to comment on the lawsuit.
The case is officially known as Consensys Software Inc. vs. SEC, 4:24-cv-00369, and is being heard in the US District Court, Northern District of Texas, located in Fort Worth.