Consensys Lawsuit Against SEC Dismissed

9/20/2024 3:29:48 PM

(MENAFN- eTrendy Stock) Consensys' lawsuit against the U.S. Securities and Exchange Commission (SEC) was dismissed by a federal judge after the regulator ended its Ethereum investigation.

Judge Reed O'Connor of the U.S. District Court for the Northern District of Texas ruled that the lawsuit was no longer necessary because the SEC did not present an immediate threat.

The judge wrote,“Because withholding consideration subjects the plaintiff to scant, if any, hardship, the claim lacks a ripe case or controversy.” This decision came after the SEC shut down its probe earlier this year into Ethereum 2.0 and related issues involving Consensys.

Consensys Responds to the Dismissal

Consensys, the blockchain technology incubator, acknowledged the court's decision in a statement posted on X.“The SEC dropped its 'Ethereum 2.0' 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,” the company said.

Consensys had filed the lawsuit in April, challenging the SEC's actions and seeking a court declaration that Ethereum's native token, ether (ETH), is not a security. The company also sought confirmation that its staking service and the MetaMask wallet did not violate U.S. securities law.

SEC Ends Probe But Files New Charges

Although the Ethereum investigation was halted, the SEC filed new charges against Consensys in June. These charges related to the company's MetaMask service, which the SEC alleged was operating as an unregistered securities broker.

The SEC has not commented publicly on Ethereum's legal status, and its investigation into MetaMask is ongoing. Last week, the regulator settled with eToro, allowing the trading platform to continue listing ETH in the U.S. despite ongoing scrutiny of Ethereum.

While Consensys celebrated the dismissal of the lawsuit, the company remains involved in broader legal matters with the SEC. The company has continued to defend its position, emphasizing the legality of its services within the Ethereum ecosystem.

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