Ethereum developer Consensys has filed a lawsuit against the U.S. Securities and Exchange Commission.
Consensys explains that it took the formidable regulator to court because it believes that it does not want the SEC to expand its jurisdiction by "wrongly" labeling the second-largest cryptocurrency as a security.
Moreover, the firm argues that the regulator's "reckless approach" is hurting Ethereum developers, institutions as well as market participants.
Consensys says that other industry participants should be equally "aggrieved" by the regulator's aggressive actions.
"At Consensys, we believe that advancing adoption of blockchain platforms like Ethereum will help reshape and enhance how future generations will manage economic, financial, social, political, and technological systems, creating a more equitable, transparent, and innovative world," the firm added.
The recent legal action confirms previous reporting about the SEC's efforts to label the second-largest cryptocurrency as a security with a slew of subpoenas.
As reported by U.Today, the SEC is expected to deny a few of Ethereum ETF proposals, including the one from BlackRock.
Consensys founder Joe Lubin told Fortune that the SEC's hostile stance was likely meant to justify the upcoming rejection. Lubin claims that the SEC wants to "stifle" innovation and prevent massive flows of capital into the ecosystem. However, it is worth noting that BlackRock's Larry Fink said that it was possible to launch an Ether ETF even if Ether were to be classified as a security.
The price of Ether (ETH) is up 0.7% over the past 24 hours, according to CoinGecko data.
The SEC is currently engaged in heated legal battles with some of the largest cryptocurrency firms, including Coinbase, Uniswap, and Ripple. As reported by U.Today, Ripple CEO Brad Garlinghouse predicted that the SEC would lose its "war" against Ethereum after initial reports detailing the SEC's efforts to crack down on the top altcoin.