Texas Court to Rule on MetaMask's Regulatory Status in ConsenSys-SEC Case

IconCryptoNewsTerminal Staff02 Jul, 2024

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Texas Court to Rule on MetaMask's Regulatory Status in ConsenSys-SEC Case

The United States District Court for the Southern District of Texas has agreed to hear a motion by ConsenSys' lawyers to determine whether MetaMask, a popular crypto wallet, is subject to regulation by the Securities and Exchange Commission (SEC). The ruling is expected by the end of the year or in early 2025. ConsenSys, the software company behind MetaMask, filed a lawsuit against the SEC in April, arguing that Ether (ETH), the native cryptocurrency of the Ethereum blockchain, is not a security and should not be subject to SEC regulation. The SEC has not yet filed a response to ConsenSys' motion. However, in a previous case involving Ripple Labs, the SEC argued that XRP, another cryptocurrency, is a security and therefore subject to SEC regulation. The outcome of the ConsenSys-SEC case could have significant implications for the future of cryptocurrency regulation in the United States. If the court rules that MetaMask is subject to SEC regulation, it could give the SEC broad authority to oversee the cryptocurrency industry.

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