Alex Dobnya
A Texas judge has granted ConsenSys' request to speed up a decision on whether the SEC can regulate MetaMask.
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U.S. District Judge Reed O'Connor of the Northern District of Texas granted a request by ConsenSys lawyers to rule on whether the U.S. Securities and Exchange Commission can expeditiously regulate self-custodial MetaMask wallets as broker-dealers.
“These questions will be considered in conjunction with the arguments that the SEC lacks standing to sue,” said Bill Hughes, an attorney representing the Ethereum Development Studio. Said In a post on his X social media account.
A court decision is expected around Christmas, Hughes said. Opening statements on the dispositive motion are due to be filed by Sept. 20.
As U.Today reportedA development studio led by Ethereum co-founder Joe Lubin filed a lawsuit against the SEC in April to block the agency's attempt to expand its jurisdiction over digital assets by classifying the largest alternative cryptocurrencies as securities.
This comes after the SEC indicated its intention to bring enforcement actions against MetaMask developers for alleged violations of securities laws, in response to which Consensys initiated injunctive and declaratory relief actions.
Last month, the powerful regulator dropped its investigation into Ethereum 2.0, meaning it would no longer argue that trading in the second-largest cryptocurrency constitutes securities trading. However, the SEC still filed a lawsuit against ConsenSys later that month, alleging that the creator of MetaMask had failed to register as a broker.
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Alex Dobnya
