{"id":334110,"date":"2024-06-29T19:00:02","date_gmt":"2024-06-29T13:30:02","guid":{"rendered":"https:\/\/dripp.zone\/news\/?p=334110"},"modified":"2024-06-29T19:00:13","modified_gmt":"2024-06-29T13:30:13","slug":"cto-backs-consensys-amid-sec-lawsuit-over-metamask-securities-sale-crypto-news","status":"publish","type":"post","link":"https:\/\/dripp.zone\/news\/cto-backs-consensys-amid-sec-lawsuit-over-metamask-securities-sale-crypto-news\/","title":{"rendered":"CTO Backs Consensys Amid SEC Lawsuit Over MetaMask Securities Sale – Crypto News"},"content":{"rendered":"

<\/p>\n

\n

In a developing legal battle, Ripple\u2019s Chief Technology Officer (CTO) David Schwartz has indirectly voiced his support for Consensys Software Inc<\/a>. This comes after the U.S. Securities and Exchange Commission (SEC) filed a lawsuit against the company. The SEC claims that Consensys has been operating as an unregistered broker.<\/p>\n

Ripple CTO Defends Consensys & MetaMask<\/h2>\n

Moreover, the SEC accused Consensys of engaging in the unregistered offer and sale of securities through its MetaMask platform. The latest lawsuit focuses on the services of MetaMask Swaps and the platform\u2019s staking feature.<\/p>\n

<\/p>\n

The SEC\u2019s complaint, filed on Friday, June 28, alleges that Consensys\u2019s operations through MetaMask constitute unregistered securities transactions. According to the SEC, MetaMask Swaps and MetaMask Staking involve pooling assets with the expectation of profits primarily derived from the efforts of others. This, the SEC argues, classifies these activities as securities transactions requiring registration.<\/p>\n

As the lawsuit news emerged, the Ripple<\/a> CTO\u2019s defense of Consensys emerged in a series of exchanges on X, formerly known as Twitter. In several replies on X, he addressed various arguments about the nature of MetaMask\u2019s services. One user suggested that MetaMask\u2019s services qualify as securities due to the expectation of profits derived from Consensys\u2019s efforts.<\/p>\n

Hence, Schwartz countered by drawing a comparison to the diamond industry. He argued that just as DeBeer\u2019s efforts do not determine the profits of diamond holders, MetaMask\u2019s efforts do not determine users\u2019 profits. \u201cMetaMask\u2019s efforts don\u2019t determine your profits any more than DeBeer\u2019s efforts determine the profits of people who hold diamonds,\u201d Schwartz stated.<\/p>\n

<\/p>\n

In addition, he emphasized that the source of profits from MetaMask Staking and Swaps is external and independent of MetaMask\u2019s control. However, another user expressed skepticism, arguing that the presence of a direct business contract between MetaMask and its users implies a security.<\/p>\n

<\/p>\n

Also Read:\u00a0Ripple Vs SEC: Judge Torres Doctrine Stands, XRP Secondary Sales Are Not Securities<\/a><\/strong><\/p>\n

Schwartz Slashes MetaMask Securities Sale Claims<\/h2>\n

In response, Schwartz highlighted a crucial distinction between business and investment contracts. \u201cSure. But nothing about that business contract determines the profit users get. MetaMask<\/a> takes an agreed cut for providing services to the users. The source and amount of the profit they split is outside of MetaMask\u2019s controls and not dependent on their efforts,\u201d he explained.<\/p>\n

Schwartz further clarified his stance by stating, \u201cAn agreement of a party to provide management services and pass through of funds where the source of the profits shared is entirely outside the agreement and not due to any party\u2019s efforts is not an investment contract.\u201d According to him, the profits generated from MetaMask\u2019s services are not a result of Consensys\u2019s efforts but arise from external market conditions and user activities.<\/p>\n

<\/p>\n

Amid the Ripple CTO\u2019s statements, broader regulatory news suggests that District Judge Amy Berman Jackson concurred with Judge Torres\u2019 stance regarding XRP\u2019s programmatic and secondary sales. In the Binance vs. SEC case, Judge Jackson rejected the SEC\u2019s claims about secondary BNB sales by non-Binance entities.<\/p>\n

Moreover, this ruling sets a important precedent for current cryptocurrency-related legal cases in the U.S. Hence, companies like Coinbase, Consensys, and Kraken are expected to leverage this decision to strengthen their positions in their respective lawsuits. With this ruling, SEC attorneys can no longer argue that Judge Torres\u2019 perspective on secondary sales lacks judicial support or adoption.<\/p>\n

Also Read:\u00a0Ripple News: Exec Makes Latest Comment On Tension With U.S. SEC<\/a><\/strong><\/p>\n

<\/p>\n

<!– <\/p>\n

<\/div>\n

–><\/p>\n

\n
\n

\u2713 Share:<\/p>\n

<\/a><\/p>\n

\n
\n \"coingape\"
\n<\/a>\n <\/div>\n<\/p><\/div>\n<\/p><\/div>\n

<!– <\/p>\n

\n
\n
\n
\n

<\/p>\n

\"\"<\/div>\n
Top Crypto Marketing Firms \/ Agencies 2023; Here\u2019s Best Picks [Updated]\n <\/div>\n

<\/a><\/p><\/div>\n<\/p><\/div>\n

\n
\n

<\/p>\n

\"\"<\/div>\n
Top 10 Web3 Games To Explore In 2023; Here List\n <\/div>\n

<\/a><\/p><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<\/p><\/div>\n

–><\/p>\n

\n
\n
\n
\n
\n<!–<\/p>\n
<\/div>\n

–><\/p>\n

CoinGape comprises an experienced team of native content writers and editors working round the clock to cover news globally and present news as a fact rather than an opinion. CoinGape writers and reporters contributed to this article. <\/p>\n<\/p><\/div>\n

\n \"\"\"\" <\/div>\n<\/p><\/div>\n<\/p><\/div>\n
\n

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.<\/p>\n<\/div><\/div>\n<\/p><\/div>\n

<!– <\/p>\n

\n
\n Crypto Stories<\/span><\/p>\n

View all<\/a>\n <\/div>\n

\n
\n
\n
\n <\/p>\n
\"5<\/div>\n
5 Important Highlights from the Recent Fed Meeting <\/div>\n

<\/a>\n <\/div>\n<\/p><\/div>\n<\/p><\/div>\n

\n
\n
\n <\/p>\n
\"ChatGPT's<\/div>\n
ChatGPT\u2019s Next Big Upgrade: What You Need to Know <\/div>\n

<\/a>\n <\/div>\n<\/p><\/div>\n<\/p><\/div>\n

\n
\n
\n <\/p>\n
\"5<\/div>\n
5 Reasons behind Mega Bank\u2019s 2024 Ethereum Price Prediction <\/div>\n

<\/a>\n <\/div>\n<\/p><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<\/p><\/div>\n

–><\/p><\/div>\n","protected":false},"excerpt":{"rendered":"

In a developing legal battle, Ripple\u2019s Chief Technology Officer (CTO) David Schwartz has indirectly voiced his support for Consensys Software Inc. This comes after the U.S. Securities and Exchange Commission (SEC) filed a lawsuit against the company. The SEC claims that Consensys has been operating as an unregistered broker. Ripple CTO Defends Consensys & MetaMask […]<\/p>\n","protected":false},"author":2,"featured_media":332456,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[173],"tags":[201,248,251,246,257,255,250,252,247,253,249,256,254],"class_list":["post-334110","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-others","tag-blockchain","tag-bsc","tag-chainlink","tag-coin","tag-cryptocurrency","tag-gta","tag-looks-rare","tag-oracle","tag-polygon","tag-quickswap","tag-safe-moon","tag-wallet","tag-wordpress"],"_links":{"self":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/334110","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/comments?post=334110"}],"version-history":[{"count":2,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/334110\/revisions"}],"predecessor-version":[{"id":334115,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/334110\/revisions\/334115"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media\/332456"}],"wp:attachment":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media?parent=334110"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/categories?post=334110"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/tags?post=334110"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}