Court Dismisses Consensys Lawsuit Against SEC

A U.S. district court has dismissed a lawsuit filed by Consensys Software Inc. against the Securities and Exchange Commission (SEC).

Judge Reed O’Connor of the Northern District of Texas ruled in favor of the SEC, stating that Consensys’ claims regarding ether’s classification as a security were moot.

The judge confirmed that Consensys would not pursue certain claims and ruled that the SEC’s actions concerning Consensys’ MetaMask software lacked finality, leading to the dismissal of the case without prejudice.

Consensys initially filed the lawsuit in April, contesting the SEC’s stance on ether and alleging the agency targeted MetaMask.

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Although the SEC closed its investigation into Ethereum in June, which Consensys considered a win, the company continued the lawsuit seeking clarification on whether its MetaMask services violated securities laws.

In July, the SEC sued Consensys for failing to register its MetaMask swaps service as a broker. Following the dismissal, Consensys expressed its commitment to advocating for blockchain developers and noted a potential shift in Washington’s attitude toward cryptocurrencies.

Alexander Stefanov