Read DAO (I am doingRocket Pool (RPL) prices fell sharply on Friday. At the time of writing, LDO and RPL were in the red by 15% and 10% respectively, with the losses coming as the market reacted to the latest regulatory news.
The price of Ethereum (ETH) was also lower, down nearly 3%, while Maker (MKR), Uniswap (UNI) and Arbitrum (ARB) also declined. This decline can be attributed to the US Security and Exchange Commission (SEC) filing a lawsuit against Consensys, the Ethereum software company behind the MetaMask cryptocurrency wallet.
SEC Sues Consensys After Ending Ethereum 2.0 Investigation
The SEC’s conclusion of its investigation into Ethereum 2.0 gave a hint that the regulator has reversed its outlook on altcoins. It is worth noting that earlier in May, the Securities and Exchange Commission (SEC) approved Ethereum spot ETFs for the US market.
However, there is still a big burden – the SEC’s Wells Notice against Consensys. That means potential enforcement action, as the SEC outlines its view of MetaMask, Consensys’ crypto wallet and staking services platform.
Lido and Rocket Pool prices drop
Lido (LDO) and Rocket Pool (RPL) are among the cryptocurrencies linked to Ethereum that rose in value for a few days despite the decline in the market. The gains came after Consensys announced that the Securities and Exchange Commission had ended its investigation into Ethereum 2.0.
LDO rose from around $1.85 to highs of $2.40 amid Ethereum’s big win, while RPL jumped from $26.50 to over $30.00 as the news added to a confluence of other positive catalysts to push altcoins higher.
What the SEC said about Lido and Rocket Pool
In the lawsuit filed today in the U.S. District Court for the Eastern District of New York, the SEC alleged that “Consensys violated the federal securities laws” after failing to register as a broker and for offering unregistered securities.
“Specifically, Consensys offered and sold tens of thousands of securities to two issuers: Lido and Rocket Pool,” according to the SEC statement. complaint is reading.
The SEC added that Lido and Rocket Pool’s placements with ETH mean that investors expect to make profits, and this comes with the administrative efforts of the two protocols.
