According to The Block, the U.S. Federal Court issued a statement on September 19, 2024, stating that it has dismissed Ethereum software developer Consensys’ claims against the U.S. Securities and Exchange Commission (SEC) regarding MetaMask and ETH.
Court rejects Consensys' case against SEC
Since 2022, Ethereum software developer Consensys has received SEC subpoenas one after another. Due to ongoing disputes over "whether the MetaMask wallet facilitates securities sales" and "Ethereum pledge services", the lawsuit has not yet ended.
However, Consensys filed a lawsuit against the SEC in April 2024, claiming that MetaMask is not a trading broker under federal law, and the Ethereum pledge service is not a security. The case was dismissed on the grounds of "meaning, lack of jurisdiction over MetaMask's accusations" and other reasons.
Judge Reed O’Connor said Consensys’ claims against ETH were moot and dismissed the MetaMask claims for lack of jurisdiction. In addition, Consensys also acknowledged that it will no longer pursue claims related to the APA (Administrative Procedure Act). The entire case was ultimately dismissed, but the judge stressed that this did not affect Consensys' right to sue in the future.
SEC litigation continues
Although the SEC ended its investigation into Ethereum in June 2024, Consensys still seeks government statements such as "MetaMask wallet, Ethereum pledge" and other services do not violate U.S. securities laws. However, the SEC further indicted Consensys in July 2024, alleging it was an illegal broker and offered unregistered securities through MetaMask Swaps.
O’Connor said, “The SEC’s various complaints and legal actions against Consensys are not over yet.” Although in June 2024, the SEC had concluded its investigation into Ethereum, and the encryption industry also cheered because of this matter. However, Consensys still seeks government statements such as "MetaMask wallet, Ethereum pledge" and other services that do not violate U.S. securities laws.
But in July 2024, the SEC sued Consensys in federal court on the grounds that "Consensys was an illegal broker and provided unregistered securities through MetaMask Swaps."
Court upholds SEC's dismissal of claims, Consensys insists on fighting for rights
Judge O’Connor said that because the SEC’s prosecution action has not yet been concluded, the case does not currently qualify for judicial investigation. It also emphasized that Consensys has not faced significant difficulties and has not reached the point where significant impact has occurred or a court ruling is required, supporting the SEC's request to dismiss the claim. Consensys said that even if disputes with the SEC continue, we will not give up and continue to fight for blockchain rights.
(Dismantling the SEC v. Consensys case: What “crypto securities” transactions did MetaMask facilitate? What are the standards?)
This article The U.S. court rejected Consensys’ claim against the SEC and agreed with the SEC’s reasons for prosecution. It first appeared on Chain News ABMedia.
