The U.S. Securities and Exchange Commission (SEC) and its Chairman, Gary Gensler, have been considering Ethereum as a security for over a year. Recently, Consensys, a company that develops Ethereum software, filed a complaint against the agency after this information came to light.

According to the complaint, the SEC’s investigation into Ethereum 2.0 was based on the belief that certain securities, including ETH, were offered and sold since 2018. The lawsuit reveals that the SEC has been requesting detailed information from Consensys regarding their role in the proof-of-stake (PoS) update, as well as their acquisitions, holdings, and sales of Ethereum.

This recent development contradicts previous guidance from former SEC Chairman Jay Clayton, who stated that Ethereum, along with Bitcoin, is not considered a security. Many in the crypto industry are concerned about Gensler’s stance on Ethereum’s regulatory status, especially after the Merge update.

Consensys has taken legal action against the SEC to prevent the regulator from overseeing the Ethereum blockchain. The company’s decision to sue the SEC came after receiving a Wells notice on April 10, indicating that enforcement action might be taken against Consensys regarding its MetaMask wallet services. Consensys has emphasized that MetaMask is not a broker and does not store clients’ digital assets or conduct transactions.

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