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Judge Approves Expediting SEC's Consensys Case
Consensys gets its request to speed judge's initial review of SEC's case against them.
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A Texas judge has approved an expedited schedule for the U.S. SEC’s legal proceedings against Ethereum software company Consensys.
What's the scoop?
- In its case, the SEC claims Consensys engaged in the unregistered offer and sale of securities and operated as an unregistered broker, thus entering the U.S. securities market without providing investor protection under federal securities laws.
- Consensys’s request to expedite considering the merits of the case centers on whether the SEC has Congressional authority to regulate MetaMask as a securities broker and issuer.
- Proceedings are set to start later this month and run until November 26th, with a potential decision by the end of 2024 or early 2025.
Bankless take:
This is a legal battle to watch, as its outcome could clarify the SEC's regulatory overreach over crypto companies operating within the U.S. It could also establish a new, more limited precedent for how the SEC approaches companies that build decentralized technologies going forward. For now, we’ll have to wait and see if Consensys can convince the court that the case is unmerited.