Coinspeaker US Federal Judge Dismisses Consensys Lawsuit against US SEC
In a major regulatory development, the Texas federal judge has dismissed the lawsuit by blockchain development firm Consensys against the US Securities and Exchange Commission (SEC) and its top boss Gary Gensler.
Filed in April earlier this year, the Consensys lawsuit requested the court to declare that Ethereum is not a âsecurityâ. The firm affirmed that âConsensysâ sales of ETH ETH $2 543 24h volatility: 4.7% Market cap: $306.00 B Vol. 24h: $19.55 B do not constitute securities transactionsâ, thereby preventing the US SEC from taking any enforcement action against its MetaMask wallet software. However, later in June, the SEC ultimately proceeded to pursue the lawsuit.
Additionally, Consensys claimed that the SEC has launched an investigation into the Ethereum cryptocurrency and is willing to regulate it as a security. The securities regulator had issued a Wells notice concerning MetaMaskâs swap and staking services.
However, in a Sept. 19 ruling, Judge Reed OâConnor dismissed Consensysâ claims regarding MetaMask, stating that âenforcement actions do not constitute final agency actionsâ.
The judge also added that the Wells notice âneither marks the consummation of the agencyâs â i.e., SECâs â decisionmaking process nor establishes Plaintiffâs legal rights or obligationsâ, and it also doesnât âimpose legal consequencesâ on Consensys.
US Federal Judge Dismisses Consensys Claims
Furthermore, the judge dismissed Consensysâ claims regarding the SECâs investigation into Ethereum as moot. Consensys had noted that the regulator had dropped its probe after approving Ether exchange-traded funds (ETFs) in May. In a post on the X platform on Wednesday, September 19, Consensys said:
âOur suit against the SEC laid bare the overzealous investigation of Ethereum, and policymakers and the public at large voiced deep concern over the SECâs investigation of blockchain software development. In a significant win for the industry, the SEC dropped its âEthereum 2.0âł investigation after our litigation was filed, and the Texas court today recognized that the SEC already gave Consensys the relief it sought on that critical issue for the Ethereum ecosystem.â
The firm stated it would âcontinue fightingâ the SECâs lawsuit regarding its MetaMask software, where the agency alleges it operated as an unregistered broker and facilitated the offering and sale of unregistered securities through MetaMask Swaps. Consensys is likely to file a motion to dismiss the case.
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US Federal Judge Dismisses Consensys Lawsuit against US SEC