July 10, 2024

UNCHAINED: Why the SEC Lawsuit Against Consensys May Hold Little Ground

1 hour 5 minutes

Past rulings, such as the Coinbase and Binance cases, undermine the allegations made by Gary Gensler’s agency in its lawsuit against Consensys.

Listen to the episode on Apple Podcasts, Spotify, Pods, Fountain, Overcast, Podcast Addict, Pocket Casts, Amazon Music, or on your favorite podcast platform.

In this episode, crypto lawyers Kayvan Sadeghi and Sam Enzer delve into the SEC's lawsuit against Consensys, which focuses on MetaMask's swaps and staking services, and explore the implications of the SEC's stance on MetaMask acting as a broker dealer and the classification of its staking product as a security.

They discuss how recent rulings on Coinbase and Binance challenge the SEC's claims and whether differing judicial opinions could lead to the Supreme Court.

Also, they talk about the potential impact of the Supreme Court striking down Chevron deference for crypto regulation.

Show highlights:

0:48 The key claims in the SEC's lawsuit against Consensys and how they relate to MetaMask's swaps and staking services

3:34 How recent Coinbase and Binance rulings challenge the SEC's claims against Consensys

09:41 Whether differing judicial opinions on whether wallets with private keys act as brokers could end up being decided by the Supreme Court decision

13:18 How the SEC will substantiate its claims that MetaMask acts as a broker dealer and that its staking product is a security in Texas legal briefings

18:11 Why a token itself is not considered a security, according to Sam, and how this distinction affects secondary market transactions in the SEC's case against MetaMask

22:51 What Lido and Rocket Pool can do in response to the SEC tangentially naming their liquid staking tokens as securities

31:18 How the SEC and Consensys lawsuits will proceed, and whether conflicting rulings could arise from their parallel tracks

36:37 The key distinctions in the Binance case compared to those of Coinbase and Kraken, and how the Binance ruling might impact future crypto cases

50:48 What Chevron deference means and how its removal impacts crypto

57:35 How the elimination of Chevron deference affects current crypto cases and legislative gridlock

Visit our website for breaking news, analysis, op-eds, articles to learn about crypto, and much more: unchainedcrypto.com

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Guests:

Kayvan Sadeghi, partner at Jenner & Block

Sam Enzer, partner at Cahill Gordon & Reindel

Previous episode of Unchained with Sam and Kayvan: SBF Trial: How Sam Bankman-Fried’s Lawyers Might Try and Win His Case

Links |

Previous coverage of Unchained on the Consensys lawsuit and staking regulation:

Ethereum ETFs Likely Protect Ether From the SEC. But What About Staked ETH?

Why the SEC May Not Be Done in Its Legal Battles Over Ethereum

The SEC Ends Its Ethereum 2.0 Investigation, but Staking Isn't in the Clear

Unchained Podcast is Produced by Laura Shin Media, LLC. Distributed by CoinDesk. Senior Producer is Michele Musso and Executive Producer is Jared Schwartz.

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

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