Court Dismisses ConsenSys Lawsuit Against The US SEC

In April 2023, ConsenSys filed a lawsuit against the United States SEC, alleging that the agency was investigating Ethereum and had issued a Wells Notice regarding potential enforcement actions tied to swap and staking features provided by MetaMask. On September 19th, 2024, Judge Reed dismissed claims made by ConsenSys regarding MetaMask, stating that enforcement actions do not constitute final agency actions.

Lacking A Definitive Stance

The lawsuit aimed for a court decision asserting that Ether is not a security and that Ethereum sales do not qualify as securities transactions, in addition to preventing the SEC in terms of taking action against the MetaMask software.

The judge noted that the Wells Notice does not represent a definitive stance by the SEC, nor does it grant any legal rights or impose consequences on ConsenSys. The court also deemed all claims by ConsenSys about Ethereum moot, as the SEC had concluded its investigation into ETH earlier that summer. This conclusion followed the approval by the regulatory agency of Ether ETFs in May, which rendered the initial concerns obsolete.

ConsenSys To Pursue Other SEC Charges

Despite this ruling, ConsenSys announced its intention to continue its legal battle against a separate SEC complaint filed in June. This lawsuit accuses the company of functioning as an unregistered brokerage that provides unregistered securities through MetaMask Swaps.

ConsenSys has criticized the SEC for what it perceives as an anti-crypto agenda, arguing that the agency is attempting to expand its regulatory authority by reshaping established legal standards through enforcement actions.