Consensys vs. SEC case for Ethereum dismissed by Texas court

• Consensys announced the dismissal of a case it filed against the SEC in April regarding the agency’s alleged actions against Ethereum.
• Judge Reed O’Connor of the Northern District of Texas dismissed the case Thursday.
• Consensys argues that the court failed to examine the “merits” of its claim against the SEC.

Consensys disclosed 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 v. SEC action

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

The lawsuit, originally filed in April, accused the SEC of trying 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 victory in June after the regulator dropped its investigation into Ethereum 2.0.

Consensys pointed out that the court noted this victory against the MPs, but the case was dismissed without considering the “merits”.

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

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

Consensys also noted the shift in political sentiment toward the crypto industry, reiterating its commitment to challenging the SEC’s enforcement action against Metamask.

Judge Reed O’Connor said in his ruling Thursday that he dismissed the allegations regarding MetaMask’s offerings.

“Defendant’s Motion to Dismiss Plaintiff’s MetaMask Claim on Ripe Grounds is GRANTED.”

Meanwhile, the SEC is not relenting in its regulatory actions against crypto companies. The agency may look to sue Uniswap and OpenSea in the coming months, given that it has also served them with Wells notices.