A decide in Texas has set an expedited schedule for the U.S. Securities and Trade Fee’s (SEC) lawsuit in opposition to Ethereum developer Consensys.
The authorized proceedings are anticipated to happen between July 29 and November 26, suggesting a choice may very well be reached in late 2024 or early 2025.
Decide O’Connor agreed to think about the deserves of the case on an expedited timetable. The important thing query at hand is whether or not the SEC has Congressional authority to control MetaMask, a product of Consensys, as a securities vendor and issuer. This example was introduced by Consensys’ lawyer Invoice Hughes on a social media platform.
The SEC had alleged that the staking applications of Lido Finance (LDO) and Rocket Pool (RP) altcoins constituted unregistered securities.
The SEC filed a lawsuit in opposition to Consensys final month, alleging that the corporate violated securities rules via its MetaMask Staking and MetaMask Swaps companies. MetaMask Staking permits customers to stake ETH and MATIC, whereas MetaMask Swaps permits customers to trade numerous cryptocurrencies.
In keeping with a press release made by the SEC on June 28, Consensys is accused of unregistered presents and gross sales of securities by taking part within the distribution of staking applications. The SEC additionally alleges that Consensys operated as an unregistered agent with respect to those transactions.
The SEC argues that Consensys entered the U.S. securities market on this manner with out offering buyers with the protections afforded by the federal securities legal guidelines.
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