US court dismisses ConsenSys' claim against SEC, agrees with SEC's reasons for the lawsuit

According to The Block, the U.S. Federal Court issued a statement on September 19, 2024, stating that the claims made by Consensys, the Ethereum software developer, against the U.S. Securities and Exchange Commission (SEC) regarding MetaMask and ETH have been dismissed.

Court Rejects Consensys' Challenge Against SEC Reasons

Since 2022, Ethereum software developer Consensys has been receiving subpoenas from the SEC, with ongoing disputes over whether "MetaMask wallet facilitates securities sales" and "Ethereum staking services," leading to the lawsuit that remains unresolved.

However, in April 2024, Consensys filed a counterclaim against the SEC, arguing that MetaMask is not a broker under federal law and Ethereum staking services are not securities, seeking compensation from the SEC. Yet, the federal court has rejected the claim citing reasons such as "the allegations lack concrete meaning and lack of jurisdiction over MetaMask accusations."

Judge Reed O’Connor stated that Consensys' claims regarding ETH lack concrete meaning and the court lacks jurisdiction over the accusations against MetaMask, therefore, the case was dismissed. Additionally, Consensys has also acknowledged that they will no longer pursue claims related to the APA Administrative Procedure Act. The entire case was ultimately dismissed, but the judge emphasized that this does not affect Consensys' right to file future lawsuits.

SEC Litigation Action Continues

Despite the SEC concluding its investigation into Ethereum in June 2024, Consensys is still seeking government statements that services such as MetaMask wallet and Ethereum staking do not violate U.S. securities laws. However, in July 2024, the SEC further sued Consensys, alleging operating as an unregistered broker and providing unregistered securities through MetaMask Swaps.

O’Connor mentioned that "the SEC's various accusations and legal actions against Consensys have not ended." Although the SEC concluded its investigation into Ethereum in June 2024, causing a stir in the crypto industry, Consensys continues to assert that services like MetaMask wallet and Ethereum staking do not violate U.S. securities laws.

However, in July 2024, the SEC sued Consensys for operating as an unregistered broker and providing unregistered securities through MetaMask Swaps.

Court Supports SEC's Rejection of Claim Requests, Consensys Persists in Fighting for Rights

Judge O’Connor stated that as the SEC's accusations are still ongoing, the case does not currently meet the conditions for judicial investigation. He also emphasized that Consensys has not faced significant difficulties, nor has it reached a point of significant impact or requiring a court ruling, supporting the SEC's rejection of the claim request. Consensys stated that despite ongoing disputes with the SEC, we will not give up the fight for blockchain rights.

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