US judge approves expedited schedule for Consensys suit against SEC

As an experienced legal analyst, I’m closely following the developments in the Consensys vs. SEC case with great interest. Based on the available information, it appears that Judge Reed O’Connor has granted Consensys’ request for an expedited schedule to consider the merits of their case against the SEC. The judge’s ruling comes just a few days after the SEC filed its own lawsuit against Consensys over the MetaMask platform and staking services.

The SEC’s legal action against Consensys has been given priority by a U.S judge based on Consensys’ petition for a faster court process.

Expert: In a filing dated July 1, Judge Reed O’Connor set out a plan for considering the core issues in Consensys’ legal challenge against the regulatory body. Bill Hughes, Consensys’ senior counsel, disclosed some aspects of this decision through X on July 2.

“Judge O’Connor has agreed to expedite the consideration of ConsenSys’ case against Gensler, with Hughes commenting that the focus will be on whether the SEC possesses the legal power to classify MetaMask as a securities brokerage and token issuer.”

When is the verdict likely?

Based on Hughes’ perspective, the aforementioned matters will now be evaluated together with any counterarguments the SEC may present as to why ConsenSys’ case against them should be dismissed.

The SEC has until July 29 to submit its response, while the deadline for filing opening briefs on dispositive motions is set for September 20, 2024 – this being the latest date for submission.

At the US District Court for the Northern District of Texas, Judge O’Connor mandated that any amicus briefs must be submitted by October 4, while opposition briefs should be filed no later than November 1, 2024.

Hughes anticipates that a decision on the case may be handed down in December, which is around the holiday season.

Consensys vs. SEC – lawsuit and counter lawsuit

A few days following the Securities and Exchange Commission’s lawsuit against ConsenSys regarding their MetaMask platform and associated staking services, Judge O’Connor handed down her decision.

Back in April, ConsenSys initiated a legal action against the Securities and Exchange Commission (SEC). In this lawsuit, they sought the SEC’s determination that Ethereum should not be classified as a security, and MetaMask was not to be considered a broker-dealer.

In June, I learned that the regulatory investigation into Ethereum 2.0 led by Consensys had been dropped. However, to my surprise, the Securities and Exchange Commission (SEC) took action against Consensys in August, filing a lawsuit alleging securities violations. The SEC asserted that MetaMask, a product of Consensys, functions as an unregistered broker and facilitates the sale of unregistered securities.

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2024-07-02 22:36