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.
💡 How to buy ETH easily?
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.
Coinhouse: the most reputable French crypto platform
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.
👉 Also in the news — German police shut down 47 illegal cryptocurrency and fiat exchanges
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.
Cryptoast Research: Don't Spoil This Bull Run, Surround Yourself With Experts
Source: Court decision
The #1 Crypto Newsletter 🍞
Receive a daily crypto news recap by email 👌
What you need to know about affiliate links. This page may feature investment-related assets, products, or services. Some links in this article may be affiliate links. This means that if you purchase a product or sign up for a site from this article, our partner pays us a commission. This allows us to continue to provide you with original and useful content. There is no impact on you and you can even get a bonus for using our links.
Investing in cryptocurrencies is risky. Cryptoast is not responsible for the quality of the products or services presented on this page and could not be held responsible, directly or indirectly, for any damage or loss caused following the use of a good or service highlighted in this article. Investments related to crypto-assets are risky by nature, readers must do their own research before taking any action and only invest within the limits of their financial capacities. This article does not constitute investment advice.
AMF recommendations. There is no guaranteed high return, a product with a high return potential implies a high risk. This risk-taking must be in line with your project, your investment horizon and your ability to lose part of these savings. Do not invest if you are not prepared to lose all or part of your capital.
To go further, read our Financial Situation, Media Transparency and Legal Notices pages.
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
1352 articles
