Web3 Community Battles SEC Overreach Amidst Regulatory Struggles

The Web3 initiative, focused on creating a more inclusive, transparent, and decentralized internet, is being met with significant regulatory resistance in the United States. As reported by linea.mirror.xyz, the Web3 developer community is facing threats deemed to be hasty regulatory actions.

The Importance of Defending Web3

In April 2024, Consensys, a founding figure of Linea, filed a lawsuit against the U.S. Securities and Exchange Commission (SEC). The lawsuit seeks to stop an investigation into the Ethereum ecosystem and asserts that blockchain software developers like Consensys do not qualify as brokers under U.S. securities laws. While the SEC concluded its investigation of Ethereum, it moved forward with enforcement against MetaMask, labeling it as an unlicensed broker of unregistered securities.

Many industry professionals view the SEC’s action as a misinterpretation of the nature and function of crypto wallets. This action poses a considerable risk to blockchain software development within the U.S. Many are considering this enforcement as a deliberate policy decision that targets the technological advancements fostered by Web3 creators, who are pioneering the use and development of this technology.

Since this litigation began, the entire team at Consensys has been advocating for the right to innovate—not only for their organization but for the broader global crypto community.

Support the Web3 Builder Movement

In the coming weeks, Consensys and Linea will be utilizing their platforms to highlight the stories of Web3 builders in their “Builder Stories” series. The initiative is designed to present a closer look at the individuals and groundbreaking projects central to Web3. The upcoming season will include a diverse array of builders, ranging from industry veterans to emerging innovators, showcasing the individuals, skills, and technological advancements at risk if the SEC’s overreach persists.

For example, the series will spotlight SheFi Founder Maggie Love, emphasizing the essential contributions of women in the blockchain innovation landscape.

The community is invited to partake in the dialogue and use the hashtag #Web3forAll when posting on social media. More information regarding Consensys’ legal action against the SEC is accessible on their official website, along with ways to contribute to the Web3ForAll movement.

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