US judge approves expedited schedule for Consensys suit against SEC

A U.S judge has granted a request by software firm Consensys that sought an expedited schedule in the company’s lawsuit against the U.S. Securities and Exchange Commission (SEC).

Judge Reed O’Connor, in a filing on July 1, approved a timeline in which the court will now consider the merits of Consensys’ case against the regulator. Bill Hughes, senior counsel for Consensys, shared some details of the judge’s ruling via X on July 2.

“Important News about Consensys v. Gensler.  Judge O’Connor granted our request that he consider the merits of our case on an expedited basis:  whether the SEC has Congressional authority to regulate MetaMask as a securities broker and issuer,” Hughes said.

When is the verdict likely?

According to Hughes, the above issues are now set for consideration alongside any arguments from the SEC that Consensys’ case against the agency should not be allowed.

Per a timeline of the expected proceedings, the SEC has until July 29 to file its response. Meanwhile, September 20, 2024 is the deadline for filing opening briefs on the dispositive motions.  should be filed latest by September

In the filing at the U.S. District Court for the Northern District of Texas, Judge O’Connor also ordered that any amicus briefs be filed on or before October 4 and opposition briefs not later than November 1, 2024.

Hughes believes a ruling on the case could come in December, with this looking likely to come around Christmas.

Consensys vs. SEC – lawsuit and counter lawsuit

Judge O’Connor’s verdict comes a few days after SEC sued Consensys over its MetaMask platform and the staking services related offerings.

Remember that Consensys had already filed a lawsuit against the SEC in April. In the lawsuit, the company asked for a ruling that Ethereum is not a security and that MetaMask is not a broker dealer.

Consensys announced that the regulator had dropped its investigation into Ethereum 2.0 in June, only for the SEC to file its own lawsuit accusing Consensys of securities violations. Specifically, the SEC claims MetaMask is an unregistered broker and is offering unregistered securities.