SEC Triumphs Over Consensys as Judge Dismisses Ethereum Developer’s Claims: Major Setback for Crypto!
The court judge dismissed Consensys’s claims against the American securities regulatory body. Latest development in the dispute between this crypto firm & crypto hater financial regulator once again ignited panic among the investors.
Consensys is a popular Blockchain developer firm, founded by one of the Ethereum co-founder. This firm is mainly known for its MetaMask crypto wallet, a top-level decentralized crypto wallet. In early of this year, the United States Securities & Exchange Commission (SEC) filed a lawsuit against this firm over the violation of Securities Act, but later the firm, in April, filed a countersuit against the SEC body for overstepping the regulatory boundary.
In the latest development, on 20 Sep 2024, the court judge Judge Reed O’Connor in the U.S. District Court for the Northern District of Texas in the Fort Worth Division dismissed Consensys’ claims and supported the SEC agency.
With this latest court judge’s decision, the crypto industry is shocked because the crypto firm’s representative raised genuine questions against the SEC’s enforcement actions.
Through the suit, Consensys asked how the SEC body categorized Ethereum (ETH) as a security token. It also said the agency has “trained its sights” on the firm’s MetaMask software. The firm noted in the complaint that SEC staff sent Consensys a Wells notice in April, meaning a formal notice that the agency plans to bring an enforcement action against them.
SEC vs Ethereum
It is worth noting that initially, the SEC body was planning to announce Ethereum as an unregistered security token but somehow changed the decision & decided not to conduct an investigation against Ethereum & Ethereum foundation.
But here, all these things are creating only one question: how can a top financial regulatory body suddenly decide to take action, then suddenly drop the plan, and fail to explain the criteria they used to label any crypto token as security or non-security.
Read also: Top Crypto Detective Declines Involvement in Investigating WazirX Hacking Incident
