Blockchain development company Consensys has filed suit with the U.S. Securities and Exchange Commission (SEC) and Chairman Gary Gensler.
The lawsuit against five of the commissioners, including Gensler, was dismissed by U.S. District Judge Reed O'Connor of the Texas District Court.
O'Connor, while dismissing ConsenSys's claims regarding MetaMask, said that "enforcement actions do not represent final agency action."
The lawsuit, which began in April, led to the court declaring that Ethereum cannot be classified as a security, and that ConsenSys’ sale of ETH was not a securities sale.
The lawsuit also asked the SEC to block enforcement actions against the MetaMask wallet software, which the SEC filed in June.
ConsenSys claims that the SEC had launched an investigation into Ethereum and planned to regulate it as a security, and that it had also filed suit against MetaMask regarding its swap and staking services.
Judge O'Connor dismissed ConsenSys' arguments, saying, "The Wells Notice does not terminate the SEC's decision-making process or nullify the plaintiffs' legal rights or interests."
"It does not establish any obligations on ConsenSys," he said, "nor does it impose any legal consequences on ConsenSys." He also said, "In July, the SEC approved an Ethereum exchange-traded index fund (ETF)."
"Subsequently, ConsenSys announced that its Ethereum-related investigation had been completed, so ConsenSys's Ethereum-related claims are also meaningless."
On the 19th, ConsenSys posted on X (formerly Twitter) that "Unfortunately, a Texas court today dismissed our lawsuit on procedural grounds.
"Since the lawsuit was filed, the SEC has concluded its investigation into Ethereum 2.0 and has filed suit in Texas court.
"Today, the Court affirmed that the SEC has provided ConsenSys with the relief it desired on an issue that is important to the Ethereum ecosystem."
The company said it will continue to fight the SEC lawsuit over its MetaMask software.
2024/09/20 14:52 KST
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