A lawsuit against ConsenSys by the U.S. Securities and Exchange Commission (SEC) and SEC Chairman Gary Gensler was dismissed in a Texas court on Thursday evening.
The ConsenSys lawsuit was originally filed in April and contained some bombshell information, including allegations that the SEC had opened an investigation into Ethereum and that the agency sent Wells a notice to the company behind MetaMask .
=> Read more: SEC files lawsuit against ConsenSys, the company that developed the MetaMask wallet
“According to the April filing, on April 10, 2024, SEC staff sent ConsenSys a ‘Wells Notice’ stating its intention to recommend that the Commission bring an enforcement action against ConsenSys for violating the federal securities laws through its MetaMask Swaps and MetaMask Staking products.”
The notice alerted the company that the SEC had completed its investigation and was XEM filing a lawsuit, but that did not necessarily mean the agency would pursue litigation.
However, since the April filing, the SEC has filed its own lawsuit against ConsenSys , targeting MetaMask Swaps and claiming that Lido and Rocket Pool are unregistered securities.
Judge Reed O'Connor noted this in his decision on Thursday when he dismissed the claims related to MetaMask's products.
“Similarly, enforcement actions do not constitute final agency actions,” he wrote. “This notice does not mark the completion of the agency’s — i.e., the SEC’s — decision-making process nor does it establish plaintiffs’ legal rights or obligations.”
The ETH related allegations made by ConsenSys were dismissed as irrelevant – which is not surprising given that the SEC announced it was dropping its investigation into ETH this summer just as it gave the green light to ether-related ETFs.
ConsenSys said in a statement.
“Regrettably, today the Texas court dismissed our complaint on procedural grounds without XEM the merits of the allegations we brought against the SEC,” “Today, the Texas court recognized that the SEC has given ConsenSys the relief we sought on an issue that is important to the Ethereum ecosystem.
