The U.S. Securities and Exchange Commission (SEC) has filed a lawsuit against Consensys, the creator of the popular MetaMask wallet, alleging that Consensys acted as an unregistered securities broker and staking service provider through MetaMask, generating over $250 million in illegal fees since January 2023.

This legal action by the SEC comes at a time of heightened scrutiny over cryptocurrency regulation. Recently, the U.S. Supreme Court overturned the "Chevron doctrine," which previously allowed federal agencies like the SEC broad latitude in interpreting their regulatory scope. This decision has sparked ongoing discussions regarding the SEC's authority to regulate crypto assets such as MetaMask.

Consensys has pushed back against the lawsuit, arguing that it represents regulatory overreach by the SEC. The company contends that the SEC does not have jurisdiction over software interfaces like MetaMask. Earlier in April, Consensys preemptively sued the SEC after being informed of an impending lawsuit related to MetaMask's staking programs.

According to the SEC's allegations, Consensys enabled MetaMask users to stake Ethereum through third-party programs that the SEC considers to be securities. Notably, while the SEC has not classified Ethereum itself as a security, it has suggested that staked Ethereum could potentially fall under this classification. This adds a layer of complexity to the SEC's case against Consensys, particularly since staking has become integral to Ethereum's operational framework.

Despite the SEC's recent approval of spot Ethereum ETF trading, effectively affirming Ethereum as non-security, the ongoing lawsuit against Consensys indicates the SEC's continued assertiveness in regulating major players within the U.S. cryptocurrency market.