- The court said the SEC had not made any final decision about Ethereum’s regulatory status.
- Consensys filed the case in April to preempt potential regulatory action after receiving a Wells notice from the SEC.
A US judge dismissed Consensys’ lawsuit against the Securities and Exchange Commission (SEC) concerning Ethereum’s regulatory status. In its decision, the court ruled that the SEC’s actions were not final, rendering Consensys’ claims premature.
Consensys filed its lawsuit against the SEC in April, attempting to preempt regulatory action against Ethereum. The firm, known for developing decentralized applications on the Ethereum blockchain, sought clarification after receiving a Wells notice from the SEC over securities violations related to its popular wallet, MetaMask.
At the center of the dispute was Consensys’ allegation that the SEC internally viewed Ethereum (ETH) as a security, a classification that could have far-reaching consequences for the crypto industry. The lawsuit aimed to obtain an official declaration that Ethereum was not a security, challenging what it called the agency’s “overreach.”
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SEC’s Ethereum Regulation
Despite Consensys’ claims, the court dismissed the case on procedural grounds. Judge Reed O’Connor noted that the lawsuit lacked a proper case for judicial review because the SEC had not taken any final action that could be legally challenged.
The judge’s decision focused on the absence of any conclusive ruling or enforcement from the SEC regarding Ethereum. Without finality, the court argued, Consensys’ concerns were speculative and did not warrant judicial intervention at this stage.
While the judge dismissed the lawsuit, the conflict between Consensys and the SEC is far from over. Consensys had earlier claimed a partial victory, announcing in June that the SEC had dropped its investigation into Ethereum’s status.
In a statement following the court’s dismissal, Consensys expressed disappointment but emphasized that the fight was not over. Consensys also highlighted growing political interest in Washington regarding digital assets and blockchain technology, suggesting a potential shift in how lawmakers and regulators view the industry.
