Expedited Schedule Approved for Consensys’ Suit Against SEC

A U.S. judge has approved an expedited schedule in Consensys’ lawsuit against the U.S. Securities and Exchange Commission (SEC). Judge Reed O’Connor, in a filing on July 1, agreed to consider the merits of Consensys’ case on an accelerated basis.

Bill Hughes, senior counsel for Consensys, shared the news on July 2 via X (formerly Twitter). “Judge O’Connor granted our request to expedite the consideration of whether the SEC has the Congressional authority to regulate MetaMask as a securities broker and issuer,” Hughes stated.

Timeline and Proceedings

The SEC has until July 29 to file its response, and opening briefs on the dispositive motions are due by September 20, 2024. Amicus briefs must be submitted by October 4, with opposition briefs due by November 1, 2024. Hughes anticipates a ruling around December, possibly near Christmas.

Background of the Lawsuit

This development follows the SEC’s lawsuit against Consensys over its MetaMask platform and staking services. Consensys had earlier filed a lawsuit in April seeking a declaration that Ethereum is not a security and that MetaMask is not a broker-dealer. Although the SEC dropped its investigation into Ethereum 2.0 in June, it subsequently filed a lawsuit alleging that MetaMask is an unregistered broker and that Consensys is offering unregistered securities.

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