Judge Dismisses ConsenSys Lawsuit After SEC Withdraws Ethereum Investigation
ConsenSys, the blockchain company behind Ethereum (CRYPTO: ETH) infrastructure projects like MetaMask, has faced a setback in its lawsuit against the U.S. Securities and Exchange Commission (SEC).
What Happened: The company had initially sued the SEC for overreach, accusing the regulator of conducting an unnecessary investigation into Ethereum, specifically targeting Ethereum 2.0.
The lawsuit, filed earlier this year, sought to clarify that Ethereum’s native token, ether, should not be classified as a security.
However, a Texas judge ruled that the lawsuit lacked merit due to the SEC’s decision to abandon its Ethereum probe. In his decision, Judge Reed O’Connor of the U.S. District Court for the Northern District of Texas explained, “because withholding consideration subjects plaintiff to scant, if any, hardship, the claim lacks a ripe case or controversy.”
Essentially, the court found that without an active investigation, ConsenSys had …
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