Among the famous crypto court cases, the case between Consensys and the SEC in the United States has taken an intriguing turn. The blockchain development giant had filed a lawsuit to stop the SEC’s attempts to classify Ethereum as a financial security. But a Texas federal judge recently ruled on a key issue that could redefine the Ethereum ecosystem.
SEC vs Consensys: A Setback, But Not the End
THE verdict fell like a bolt from the blue. Judge Reed O'Connor said Consensys Dismisses Complaint Against SECdefending Ethereum's status and arguing that the agency's enforcement actions are not final decisions. Consensys hoped that the court blocks the SEC from continuing its investigation into Ethereumafter it issued a “Wells Notice” regarding MetaMask’s services, including swaps and staking.
But Consensys does not admit defeat. The firm quickly reacted on X (formerly Twitter), stating:
” We will continue to fight to protect the Ethereum ecosystem and the rights of blockchain developers. »
The company also stressed that SEC Drops Ethereum 2.0 Investigation after the complaint was filed, an encouraging sign for the industry.
Key points:
- The judge rejected the argument that the SEC's actions had legal consequences;
- The investigation into Ethereum 2.0 was dropped by the SEC in May 202;
- Consensys prepares its counterattack on MetaMask and its features.
The shadow of Ethereum crypto still looms
As the MetaMask case continues to move forward, it highlights a crucial question: Is Ethereum a security? Although the SEC’s investigation into Ethereum 2.0 has been dropped, the blockchain firm remains under pressure. Consensys’ initial complaint called for a clear judgment: qthat ETH sales are not considered sales of financial securities.
However, the classification of crypto assets such as Ethereum (ETH) remains a sword of Damocles for the entire industry. Consensys does not intend to stop there and has promised to file a new request to face remaining charges regarding MetaMask.
The SEC is not commenting yet, but the next few weeks could be pivotal for Ethereum crypto and blockchain developers.
All in all, the question of Ethereum's classification as a financial security remains a source of debate. Gary Gensler, a staunch critic of crypto, argues that since the transition to Proof-of-Stake, ETH has become a “security”.
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