Ethereum
Ethereum Developer Consensys Wins Victory Against SEC
Alex Dovbnia
A Texas judge has granted Consensys’ request to expedite a decision on whether the SEC can regulate Metamask.
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Reed O’Connor, a federal judge in the United States District Court for the Northern District of Texas, has granted a request from Consensys attorneys to rule on whether the U.S. Securities and Exchange Commission can regulate self-custodial wallet MetaMask as a broker-dealer on an expedited basis.
“These issues would be considered alongside any arguments the SEC might make that we cannot bring a claim against them,” said Bill Hughes, an attorney representing the Ethereum development studio. said in a post on his social media account X.
Hughes said the court’s decision is expected around Christmas. Briefs on motions for judgment are expected to be filed by Sept. 20.
As reported by U.TodayThe development studio, led by Ethereum co-founder Joe Lubin, sued the SEC in April to thwart the agency’s attempt to expand its jurisdiction over digital assets by labeling the largest alternative cryptocurrency a security.
The move comes after the SEC indicated it would file an enforcement action against the MetaMask developer for alleged securities law violations. Consensys then filed an injunction and declaratory relief proceeding.
Last month, the fearsome regulatory agency dropped its investigation into Ethereum 2.0, meaning the agency will not allege that sales of the second-largest cryptocurrency constituted securities transactions. However, the SEC ended up filing a lawsuit against Consensys that same month, arguing that the Metamask developer failed to register as a broker-dealer.
About the Author
Alex Dovbnia
Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader, and journalist with extensive experience covering everything related to this booming industry, from price analysis to blockchain disruption. Alex has authored over 1,000 articles for U.Today, CryptoComes, and other fintech outlets. He is particularly interested in regulatory trends around the world that are shaping the future of digital assets. You can contact him at alex.dovbnya@u.today.