Consensys' SEC Challenge Fails: Texas Court Dismisses Lawsuit

A Texas court dismissed the Consensys lawsuit filed against the SEC.
The court’s move followed the SEC’s decision to drop its probe into Ethereum.
Consensys vowed to continue its fight against the SEC’s autocratic power.

A Texas court has dismissed the lawsuit brought by the blockchain software company Consensys challenging the SEC’s alleged regulatory overreach.

The court’s decision comes after the SEC dropped its investigation into Ethereum earlier this year, dispelling Consensys’ claims that the regulator was attempting to undermine the Ethereum network.

Following the court’s order, Consensys shared an X post stating the court quashed their lawsuit without addressing the substance of their arguments. The platform reiterated its dedication to blockchain, promising to continue fighting for its rights.

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.
Unfortunately, the Texas court today dismissed our lawsuit on…
— Consensys (@Consensys) September 19, 2024

Consensys’ Initial Lawsuit

It was in April 2024 that Consensys initially filed the lawsuit against the SEC and its commissioners, alleging they’d planned to classify Ethereum (ETH) as a security. In the lawsuit, the company challenged the SEC’s authority and regulatory power to incorrectly classify a cryptocurrency as a security.

Emphasizing the SEC’s undue influence over the crypto industry, Consensys asserted that the regulator was trying to “seize control over the future of cryptocurrency.” The platform added that the regulator’s “reckless approach” would harm the Ethereum network and the entire crypto space.

Read also: Ripple CTO Uses Diamond Business Analogy To Support Consensys in SEC Lawsuit

Though the SEC dropped its investigation on Ethereum later in June, Consensys maintained its decision to continue its battle against the agency’s strict regulations. They argued that the SEC’s conclusion of the investigation is “momentous, but it’s not a cure-all” for the industry.

On Thursday, Judge Reed O’Connor dismissed Consensys’ lawsuit, arguing that the SEC’s enforcement actions are not considered final agency actions. The court added that the Notice doesn’t finalize the regulator’s decision-making process or establish Consensys’ legal rights or obligations.

🚨NEW: Following the @SECGov dropping its investigation into $ETH earlier this year, a Texas court today dismissed the lawsuit @Consensys filed against the SEC over what the company described as the agency’s overreach in investigating ethereum as a possible security. 👇🏼 https://t.co/t6uEHq0tRf
— Eleanor Terrett (@EleanorTerrett) September 19, 2024

Fox Business journalist Eleanor Terret shared the significant development in the Consensys lawsuit against the SEC on X on September 20. Terret wrote that the Texas court dismissed the lawsuit following the SEC’s decision to drop its ETH probe.

Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.

Source: https://coinedition.com/consensys-sec-challenge-fails-texas-court-dismisses-lawsuit/