Deniz 
Blockchain and web-based development business Consensys Software Inc.’s lawsuit against the Securities and Exchange Commission has been dismissed by a U.S. district judge.
Thursday Judge Reed O’Connor of the Fort Worth Division of the U.S. District Court for the Northern District of Texas rejected Consensys‘ allegations and sided with the SEC.
Judge O’Connor said, “For the reasons stated above, Defendants’ Motion to Dismiss Plaintiff’s ETH claims is GRANTED, and Counts I, II, and III are DISMISSED AS MOOT. Plaintiff concedes it is not pursuing an APA claim under Count IV. Finally, Defendants’ Motion to Dismiss Plaintiff’s MetaMask for lack of subject matter jurisdiction is hereby GRANTED. Accordingly, this action is dismissed without prejudice.”
In April, Consensys filed a lawsuit against the SEC partly on the agency’s security classification of ether. Consensys claimed the SEC has declared ETH is a security and has “trained its sights” on the Metamask software of the company. The complaint also mentioned by the company that SEC employees delivered Consensys a Wells notice in April, thereby indicating a formal warning that the agency intends to take enforcement action against them.
Later in June, Consensys stated it was informed the SEC was ending its probe into Ethereum—at the time hailed as a “major win” for the sector. Consensys stated it still intended to pursue the action since it was also seeking a “declaration that offering the user interface software MetaMask Swaps and Staking does not violate the securities laws.”
The SEC then sued Consensys in July on its non-registration as a broker via its Metamask swaps operation. Filed at the Eastern District of New York’s U.S. District Court, the lawsuit
Regarding MetaMask, Judge O’Connor declared none of the SEC’s actions were “final.”
The judge said, “Because Plaintiff has not identified final agency action that would render the claim fit for judicial review and because withholding consideration subjects Plaintiff to scant, if any, hardship, the claim lacks a ripe case or controversy. Defendants’ Motion to Dismiss Plaintiff’s MetaMask claim on ripeness grounds is GRANTED.”
Consensys added, in reference to the SEC in New York, it would “keep fighting for the rights of blockchain developers”.
“Outside of court, we have also seen signs of what could be a momentous step change in Washington’s sentiment towards cryptocurrencies and digital assets during a crucial period for U.S. politics,” the company said in an email statement. “We are on the right path, but must remain vigilant.”
You can also freely share your thoughts and comments about the topic in the comment section. Additionally, don’t forget to follow us on our Telegram, YouTube, and Twitter channels for the latest news and updates.