Lido and Rocket Pool Tokens Tank After SEC Sues Consensys
Market Reaction to SEC Lawsuit
Lido DAO (LDO) and Rocket Pool (RPL) prices took a significant hit on Friday, plunging 15% and 10% respectively. The sharp decline comes in response to the latest regulatory actions, as the US Securities and Exchange Commission (SEC) sues Consensys, a prominent Ethereum software company known for its MetaMask crypto wallet.
Broader Market Impact
The impact of the SEC’s lawsuit extended beyond LDO and RPL. Ethereum (ETH) saw its price slip by nearly 3%, while other notable cryptocurrencies like Maker (MKR), Uniswap (UNI), and Arbitrum (ARB) also traded lower. This market downturn highlights the sensitivity of the crypto space to regulatory developments.
SEC’s Actions Against Consensys
The SEC’s lawsuit follows the conclusion of its investigation into Ethereum 2.0, which hinted at a change in the regulator’s stance on altcoins. Earlier in May, the SEC had approved spot Ethereum ETFs for the US market, signaling a potentially favorable outlook.
However, the lingering concern was the SEC’s Wells Notice against Consensys. This notice indicated possible enforcement action, with the SEC outlining its view on MetaMask and Consensys’ staking service platform.
Impact on Lido and Rocket Pool
Lido and Rocket Pool, closely tied to Ethereum, initially surged following Consensys’ announcement that the SEC had ended its Ethereum 2.0 probe. LDO rose from around $1.85 to highs of $2.40, while RPL jumped from $26.50 to above $30.00, buoyed by positive market sentiment.
Details of the SEC Complaint
In the lawsuit filed at the United States District Court for the Eastern District of New York, the SEC alleges that Consensys violated federal securities laws by failing to register as a broker-dealer and by offering unregistered securities. The complaint specifically mentions that Consensys sold tens of thousands of securities for two issuers: Lido and Rocket Pool.
The SEC’s complaint emphasizes that Lido and Rocket Pool’s staking operations involve managerial efforts that investors rely on for profits, thus classifying them under securities regulations.
Read More
Lido and Rocket Pool Tokens Tank After SEC Sues Consensys
Market Reaction to SEC Lawsuit
Lido DAO (LDO) and Rocket Pool (RPL) prices took a significant hit on Friday, plunging 15% and 10% respectively. The sharp decline comes in response to the latest regulatory actions, as the US Securities and Exchange Commission (SEC) sues Consensys, a prominent Ethereum software company known for its MetaMask crypto wallet.
Broader Market Impact
The impact of the SEC’s lawsuit extended beyond LDO and RPL. Ethereum (ETH) saw its price slip by nearly 3%, while other notable cryptocurrencies like Maker (MKR), Uniswap (UNI), and Arbitrum (ARB) also traded lower. This market downturn highlights the sensitivity of the crypto space to regulatory developments.
SEC’s Actions Against Consensys
The SEC’s lawsuit follows the conclusion of its investigation into Ethereum 2.0, which hinted at a change in the regulator’s stance on altcoins. Earlier in May, the SEC had approved spot Ethereum ETFs for the US market, signaling a potentially favorable outlook.
However, the lingering concern was the SEC’s Wells Notice against Consensys. This notice indicated possible enforcement action, with the SEC outlining its view on MetaMask and Consensys’ staking service platform.
Impact on Lido and Rocket Pool
Lido and Rocket Pool, closely tied to Ethereum, initially surged following Consensys’ announcement that the SEC had ended its Ethereum 2.0 probe. LDO rose from around $1.85 to highs of $2.40, while RPL jumped from $26.50 to above $30.00, buoyed by positive market sentiment.
Details of the SEC Complaint
In the lawsuit filed at the United States District Court for the Eastern District of New York, the SEC alleges that Consensys violated federal securities laws by failing to register as a broker-dealer and by offering unregistered securities. The complaint specifically mentions that Consensys sold tens of thousands of securities for two issuers: Lido and Rocket Pool.
The SEC’s complaint emphasizes that Lido and Rocket Pool’s staking operations involve managerial efforts that investors rely on for profits, thus classifying them under securities regulations.
Read More