• Consensys announced dismissal of a case it filed against the SEC in April about the agency's alleged actions against Ethereum.
  • Judge Reed O'Connor of the Northern District of Texas dismissed the case on Thursday.
  • Consensys claims that the court failed to examine the "merits" of its claim against the SEC.

Consensys revealed in a post on Thursday that a Texas court has dismissed its case against the Securities and Exchange Commission (SEC), originally filed in April.

Court dismisses Consensys legal action against SEC

Consensys' lawsuit against the SEC was dismissed by a District court in the Northern District of Texas today, the firm reported in a post on X.

The lawsuit, originally filed in April, accused the SEC of seeking to declare Ethereum a security and a "regulatory overreach" in what it claimed was a stand-up action for the crypto industry. Following the lawsuit against the SEC, the crypto industry celebrated a win in June after the regulator dropped its investigation into Ethereum 2.0.

Consensys highlighted that the court had noted this win against the lawmakers, but the case was dismissed without considering its "merits."

"Unfortunately, the Texas court today dismissed our lawsuit on procedural grounds without looking at the merits of our claims against the SEC," wrote Consensys in an X post.

The regulatory battle will continue in the coming months, considering that the SEC sued Consensys in June, alleging that it acted as an unregistered securities broker through the Metamask wallet.

Consensys also noted the shift in political sentiment toward the crypto industry, re-emphasizing its commitment to contesting the SEC's enforcement action against Metamask.

Judge Reed O'Connor stated in his ruling on Thursday that he dismissed the allegations concerning MetaMask's offerings.

"Defendant's Motion to Dismiss Plaintiff's MetaMask claim on ripeness grounds is GRANTED."

Meanwhile, the SEC isn't relenting in its regulatory actions against crypto companies. The agency could be looking to sue Uniswap and OpenSea in the coming months, considering it also served them with Wells notices.


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