A federal judge has approved a timeline for the court to consider the lawsuit filed by software firm Consensys against the US Securities and Exchange Commission (SEC) and its commissioners. In a filing on July 1 in the US District Court for the Northern District of Texas, Judge Reed O’Connor set deadlines for SEC and Consensys lawyers to file opening and opposition briefs by September and November, respectively. The judge also granted the SEC a 28-day extension to respond to the complaint.
According to the timeline, all five SEC commissioners and the regulator must file their answers by July 29, with reply briefs due by Nov. 26. Consensys senior counsel Bill Hughes expects a ruling on the case around December.
Consensys filed its lawsuit against the SEC in April, claiming the regulator was trying to control the future of crypto through enforcement actions aimed at regulating Ethereum (ETH) as a security. In June, Consensys reported that the SEC had ended its investigation into ETH, but the SEC filed its own lawsuit, alleging that Consensys had been operating as an unregistered broker.
Legal experts in the crypto sector are closely watching the civil case due to its potential implications for the SEC’s regulatory authority. The SEC is currently involved in pending lawsuits against other crypto firms like Coinbase, Binance, and Ripple Labs.
Commissioner Mark Uyeda, also named in the Consensys lawsuit, criticized the SEC’s approach to crypto regulation as “problematic” in a separate statement on July 1. The SEC and Consensys lawsuits were initiated before the US Supreme Court issued two opinions that could influence how the commission handles enforcement cases.
The outcome of this case could have significant implications for the regulatory landscape of cryptocurrencies and the SEC’s future enforcement strategies. The decision is eagerly awaited by both the crypto community and regulatory experts. Stay tuned for updates on this developing story as it unfolds.