While Consensys filed a complaint against the Securities and Exchange Commission (SEC) last spring, this complaint was dismissed by a Texas court. What are the reasons?
Consensys Sees SEC Complaint Dismissed
Last April, Consensys had caused a sensation by attacking the Securities and Exchange Commission (SEC) head-onIndeed, after the federal agency sent a Wells notice to infrastructure developer Web3 on April 10, the latter filed a complaint, claiming an abuse of power by the Commission.
However, a Texas court ruled on the complaint on Thursday, dismissing it for lack of sufficient evidence to justify a trial.
In this decision, 2 points are addressed. First, the case of Ethereum (ETH), for which the SEC abandoned its investigation as to whether or not the asset constituted a security. On this point, Judge Reed O'Connor considers Consensus' request to be lapsed, given the withdrawal of the federal agency.
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Then there is also SEC Complaint About MetaMaskwhich is still ongoing. In this regard, the court notes that the SEC filed a motion that this case was not yet sufficiently mature to constitute litigation for Consensys:
They first argue that this claim should be dismissed under Rule 12(b)(1) for lack of jurisdiction, including because the claim is immature. The court agrees with Defendants' argument regarding the maturity of the case and grants their motion.
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For its part, Consensys reacted to X by deploring that the court had not examined “the merits» of his claims against the SEC:
In April 2024, Consensys filed a lawsuit to protect the Ethereum ecosystem from the SEC's regulatory overreach and stand up for the industry that has been subject to the agency's reckless enforcement agenda.
Unfortunately, the Texas court today dismissed our lawsuit on…
— Consensys (@Consensys) September 19, 2024
Despite everything, the company is satisfied with a certain positive evolution in political perception:
Outside of the courts, we have also seen signs of what could be a sea change in Washington’s sentiment toward cryptocurrencies and digital assets during a critical period in American politics. We are on the right track, but we must remain vigilant.
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Furthermore, Consensys reaffirms its willingness to fight for “the rights of blockchain developers in the United States”, while its standoff with the SEC is not over.
For its part, ETH has gained 4.7% in 24 hours, and is now trading at $2,550 at the time of writing.
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Source: Court decision
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Since 2021, I have devoted my free time to seriously training myself on cryptocurrencies in order to acquire as much knowledge and credibility as possible. I often have the opportunity to conduct interviews with influential figures in the blockchain industry. I also conduct in-depth analyses on Web3 themes to offer exclusive content to Cryptoast readers.
Vincent Maire
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