SEC Sues Crypto Firm Consensys for Not Registering as Broker (2)

The US Securities and Exchange Commission said crypto firm Consensys Software Inc. broke its rules when it failed to register as a brokerage and improperly collected millions of dollars in fees.

Consensys, which operates the popular crypto wallet MetaMask, handled millions of transactions for clients without proper regulatory oversight, the SEC said.

The regulator highlighted Consensys’ work with so-called staking programs, which pay customers a yield for letting their tokens be used to facilitate blockchain transactions. The SEC has previously sued companies like Kraken and Coinbase Global Inc over their staking products.

The case in federal court in ...