A Texas court has dismissed the lawsuit filed by ConsenSys against the U.S. Securities and Exchange Commission (SEC) and its chairman, Gary Gensler.
ConsenSys vs. SEC Lawsuit
The lawsuit, filed in April 2023, accused the SEC of investigating Ethereum and issuing a Wells notice to ConsenSys, warning of potential enforcement actions related to MetaMask's swap and staking products. ConsenSys sought a court ruling stating that Ether is not a security and aimed to prevent the SEC from taking any enforcement actions against MetaMask.
Court Decision
On September 19, Judge Reed O'Connor dismissed the ConsenSys claims over MetaMask, stating that "enforcement actions do not constitute final agency actions." O'Connor noted that a Wells notice is not the final word on behalf of the SEC and does not establish any legal rights or consequences for ConsenSys. Additionally, the court found the claims regarding Ethereum moot since the SEC closed its investigation after approving Ether ETFs in May.
ConsenSys' Next Steps
Despite this setback, ConsenSys intends to continue fighting a second SEC complaint filed in June. This lawsuit accuses the company of operating as an unregistered brokerage and offering unregistered securities through MetaMask Swaps. ConsenSys has criticized the SEC for what they describe as an anti-crypto agenda and attempts to expand its regulatory reach.
The legal battle between ConsenSys and the SEC continues to draw attention to the regulation of cryptocurrencies and how agencies exercise their authority in this field.
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