MetaMask and SEC: Activities like diamond production
Date: 2024-07-02 Author: Oliver Abernathy Categories: BUSINESS
The US Securities and Exchange Commission (SEC) filed a complaint against ConsenSys, alleging that transactions through the MetaMask wallet fall within the definition of securities transactions. The regulator believes that swaps and staking services involve profits through the efforts of third parties.
David Schwartz's position
David Schwartz disagrees with the SEC's view and compared ConsenSys' activities to the diamond industry. He cited the example of De Beers, a diamond mining and trading company, where the company's efforts do not determine the profits of diamond owners. Likewise, according to Schwartz, MetaMask's efforts do not impact user profits.
Schwartz emphasized the differences between investment contracts and business contracts. According to him, business contracts do not determine users' profits, and MetaMask is responsible for providing services to users. Users' profits depend on external market conditions and activity, and not on the efforts of MetaMask.
SEC and Ripple assessment
Schwartz commented on the SEC's approach to regulating cryptocurrencies, comparing it to the approach to regulation in China. He noted instability and deliberate market manipulation in Chinese practices, which he said were similar to the SEC's tactics.
The dispute between MetaMask and the SEC reflects broader discussions in the cryptocurrency space about the nature of digital assets and their regulation. David Schwartz's position highlights the complexity of defining securities in the context of cryptocurrency technologies and the principles of smart contracts.
