Case Background

A U.S. District Court Judge has dismissed the lawsuit filed by Consensys Software Inc. against the SEC. The lawsuit stemmed from claims regarding the SEC’s classification of Ethereum (ETH) and scrutiny of the MetaMask wallet.

SEC vs. Consensys

Consensys initially sued the SEC over the categorization of ETH as a security and the legal action threatened against MetaMask. However, Judge Reed O'Connor ruled in favor of the SEC, dismissing the claims on the grounds of lack of subject matter jurisdiction.

Consensys’ Position

Consensys filed the lawsuit in April, seeking clarity on how Ethereum and MetaMask were treated under U.S. securities laws. The firm also pursued a declaration that MetaMask Swaps and Staking services do not violate existing securities regulations.

Judge’s Dismissal

The judge dismissed the case without prejudice, meaning Consensys may refile the lawsuit in the future. The ruling stated that Consensys failed to present final agency action for judicial review, and as such, the claims were not yet ripe for consideration.

Consensys’ Future Plans

Despite the loss, Consensys said it will continue to fight for blockchain developers’ rights and plans to address the issue in its ongoing case with the SEC in New York. Source
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