The lawsuit alleging Lido and Rocket Pool are violating securities legal guidelines comes lower than two weeks after the SEC dropped its Ethereum investigation.
The SEC has filed a lawsuit in opposition to blockchain software program agency Consensys, claiming that Lido and Rocket Pool’s liquid staking packages represent unregistered securities.
The lawsuit targets Consensys, alleging that the corporate provides these securities in unregistered transactions via its “Metamask Staking” platform.
Lido and Rocket Pool are two of the biggest liquid staking protocols on Ethereum and maintain a mixed $37.6 billion in staked TVL, per DeFiLlama. The protocol’s native tokens fell promptly, with LDO plummeting 12% in half-hour.
This information comes simply 10 days after the SEC notified Consensys that it was closing its ongoing investigation into Ethereum 2.0 and that the company wouldn’t be pursuing enforcement motion in opposition to Consensys.
Consensys’ public letter following the investigation’s closure implied that its authorized battle with the SEC was removed from over.
The agency acknowledged, “It is imperative that the SEC abandon its unprincipled and opaque regulation by enforcement campaign in favor of much-needed regulatory clarity for an industry that serves as the backbone to countless new technologies and innovations.”
