The United States Securities and Exchange Commission (SEC), led by Gary Gensler, has launched a fresh offensive against the cryptocurrency industry, targeting prominent DeFi projects Lido and Rocketpool. The regulatory body alleges that these entities are operating as unregistered securities, dealing a significant blow to the crypto market.

This development follows a string of legal actions against major crypto players, including Uniswap, Kraken, Coinbase, Metamask, and Robinhood. The SEC's latest move has sent shockwaves through the market, with Lido DAO (LDO) and Rocket Pool (RPL) experiencing sharp price declines of 15% and 10%, respectively.

According to the SEC's complaint, ConsenSys has facilitated the unregistered sale of securities for Lido and Rocketpool since January 2023. These securities, in the form of liquid staking tokens like stETH and rETH, can be freely traded and used, unlike traditional staked assets. The SEC claims that ConsenSys is acting as an unregistered broker for these transactions, violating federal securities laws.

ConsenSys has responded to the allegations, accusing the SEC of pursuing an anti-crypto agenda and regulatory overreach. The company views the charges as part of a broader, unfair enforcement action against the crypto industry. Crypto investor and expert Ryan Sean Adams shares this sentiment, believing that the SEC's actions are driven by political motivations and aimed at stifling the growth of the crypto sector.

Adams argues that these regulatory measures are part of a systematic attempt to harm popular crypto projects and undermine the industry's progress. He suggests that Gensler's aggressive stance may alienate marginal voters and negatively impact President Biden's re-election chances. According to Adams, the Democratic party missed an opportunity to adopt a more favorable stance on cryptocurrency earlier this year, and the current approach reflects a larger agenda of control and expansion by the administrative state.

The SEC's lawsuit against ConsenSys is part of a broader crackdown on staking services in the cryptocurrency industry. Earlier this year, the SEC successfully sued Kraken, leading the exchange to settle for $30 million and shut down its staking services for US clients. This recent legal action against ConsenSys extends the SEC's ongoing efforts to regulate and enforce rules on staking platforms, signaling a heightened focus on DeFi projects and their operations.