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Texas court dismisses Consensys' Ethereum suit against SEC

Texas court dismisses Consensys' Ethereum suit against SEC

GrafaGrafa2024/09/23 02:45
By:Mahathir Bayena

A Texas court has dismissed Consensys’ lawsuit against the U.S. Securities and Exchange Commission (SEC), which was filed in April 2024 to challenge the SEC’s regulatory actions on the Ethereum (CRYPTO:ETH) ecosystem. 

The court's decision was based on procedural grounds, leaving the merits of Consensys’ claims unaddressed. 

Despite this legal setback, Consensys noted a significant victory for the industry, as the SEC ended its investigation into Ethereum 2.0 after the lawsuit was filed. 

Consensys had initiated the lawsuit to protect the Ethereum ecosystem from what it viewed as regulatory overreach by the SEC. 

The company sought a declaration that Ethereum (ETH) is not a security and that Ethereum-related transactions should not be treated as sales of securities under U.S. law. 

The court's ruling on September 19, 2024, did not focus on these claims but rather dismissed the case due to procedural technicalities. 

Following the court's decision, Consensys stated, “The Texas court today dismissed our lawsuit on procedural grounds without looking at the merits of our claims against the SEC.” 

The company emphasised that the SEC dropped its Ethereum 2.0 investigation, which was a critical point in the case. 

Although the Texas lawsuit has concluded, Consensys continues its legal battle in Brooklyn, where it is challenging other aspects of the SEC’s regulatory approach. 

Consensys plays a key role in the enterprise blockchain ecosystem, providing expertise in Ethereum development.

The company enables developers, enterprises, and users to build advanced applications, launch modern financial infrastructure, and access the decentralised web globally.

At the time of reporting, the Ethereum (ETH) price was $2,599.30.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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