Web3 Community Faces Regulatory Challenges as Consensys Fights SEC Overreach

Tony Kim Sep 28, 2024 11:50

The Web3 movement, driven by Consensys, faces significant regulatory challenges from the SEC, threatening innovation in the blockchain space.

The Web3 movement, aimed at fostering a more inclusive, transparent, and decentralized internet, is encountering substantial regulatory pushback in the United States. According to linea.mirror.xyz, the community of Web3 builders is facing threats from what many consider to be reckless regulatory actions.

Why Protecting Web3 Matters

In April 2024, Consensys, a founding member of Linea, announced a lawsuit against the U.S. Securities and Exchange Commission (SEC). The lawsuit aims to halt an investigation into the Ethereum ecosystem and clarify that blockchain software developers like Consensys are not brokers under U.S. securities laws. Although the SEC ended its investigation into Ethereum, it proceeded with an enforcement action against MetaMask, claiming it was an unlicensed broker of unregistered securities.

This move by the SEC is seen by many in the industry as a misunderstanding of what a crypto wallet is and does. It also poses a significant threat to blockchain software development in the U.S. The enforcement action is perceived as a policy choice targeting the technological innovation driven by Web3 builders, who are at the forefront of utilizing and developing this technology.

Since the onset of this litigation, the entire Consensys team has been fighting for the right to innovate—not just for their company but for the entire global crypto community.

Join the Movement to Support Web3 Builders

Over the next several weeks, Consensys and Linea will use their channels to share stories of the builders behind Web3 in the "Builder Stories" series. This series aims to provide an in-depth look at the people and innovative projects at the heart of Web3. The new season will feature a diverse set of builders, from veterans to emerging talents, to showcase the people, skills, and technological innovation at stake if the SEC's overreach continues.

For example, SheFi Founder Maggie Love's story is featured in the series, highlighting the critical role of women in blockchain innovation.

The community is encouraged to join the conversation and use the hashtag #Web3forAll when sharing on social media. More information about Consensys' lawsuit against the SEC can be found on their official site, along with details on how to get involved in the Web3ForAll movement.

Image source: Shutterstock

• web3
• consensys
• sec
• crypto regulation