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The lawsuit brought by Consensys, the parent company of Metamask against the U.S. Securities and Exchange Commission (SEC) in Texas was tossed out by the district judge.
Back in April, Consensys shocked the crypto world by suing the SEC. This lawsuit stemmed from a Wells Notice – a precursor to enforcement action – received by Consensys, hinting at the SEC's potential classification of Ether (ETH), Ethereum's native token, as a security.
Consensys argued that Ethereum is a decentralized network, and ETH functions more like a commodity than a security.
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"Because Plaintiff has not identified final agency action that would render the claim fit for judicial review and because withholding consideration subjects Plaintiff to scant, if any, hardship, the claim lacks a ripe case or controversy," wrote Judge Reed O'Connor, the district judge for the case.
Consensys responded to the verdict in a post on X, stating "Unfortunately, the Texas court today dismissed our lawsuit on procedural grounds without looking at the merits of our claims against the SEC."
In April 2024, Consensys filed a lawsuit to protect the Ethereum ecosystem from the SEC’s regulatory overreach and stand up for the industry that has been subject to the agency’s reckless enforcement agenda.
— Consensys (@Consensys) September 19, 2024
Unfortunately, the Texas court today dismissed our lawsuit on…
"We are on the right path but must remain vigilant. Consensys is resolved to keep fighting for the rights of blockchain developers in the U.S. as we contest the SEC's action in Brooklyn" the company further added.
