SEC Wins Key Ruling Against Consensys in Ethereum Regulation Battle
The U.S. Securities and Exchange Commission (SEC) achieved a significant victory when Judge Reed O'Connor dismissed the lawsuit filed by Consensys.
The Ethereum development studio had accused the SEC of overstepping its jurisdiction by attempting to regulate Ethereum and sought to have ETH declared a non-security, as well as protect the MetaMask wallet from regulatory scrutiny.
Consensys CEO Joseph Lubin referred to the ruling as a crucial step in maintaining access to Ethereum and the Ethereum blockchain in the U.S.
In June, after closing its investigation into Ethereum 2.0, the SEC shifted its focus to Consensys, taking legal action against the company over MetaMask’s swap and staking services.
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Judge O’Connor’s ruling stated that Consensys failed to pinpoint a final agency action suitable for judicial review, with none of the cited actions, such as a Wells Notice, qualifying as conclusive.
Additionally, the court found that Consensys could not demonstrate it would face significant hardship from the denial of judicial review. While Consensys expressed disappointment at the outcome, it acknowledged that the survival of Ethereum 2.0 in the face of SEC scrutiny was a noteworthy achievement.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
