Key Takeaways
- The securities watchdog has agreed to drop the lawsuit it brought against Consensys in June 2024.
- The crypto firm is eager to return their full focus to building and developing their technology.
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Consensys, the developer of MetaMask, has reached an agreement “in principle” with the US SEC to dismiss the enforcement case against the popular crypto wallet, Consensys founder Joseph Lubin announced today. The case will be formally closed upon approval by the SEC Commission.
I’m pleased to announce that Consensys and the SEC have agreed in principle that the securities enforcement case concerning MetaMask should be dismissed. Subject to the approval of the Commission, the SEC will file a stipulation with the court that effectively closes the case.…
— Joseph Lubin (@ethereumJoseph) February 27, 2025
Last June, the SEC filed a lawsuit against Consensys, accusing the company of unregistered securities sale and brokerage via its MetaMask services. The regulator also claimed that the firm marketed staking programs by Lido and Rocket Pool whose tokens are considered securities, further contributing to the company’s non-compliance.
This lawsuit came after Consensys had filed a pre-emptive lawsuit against the SEC in April, seeking declaratory judgments regarding Ethereum and its MetaMask products. Ten days before suing Consensys, the SEC ended the probe into Ethereum 2.0 without taking any enforcement action.
“We were committed to fighting this suit until the bitter end but welcome this outcome,” Lubin stated.
“No company wants to be the target of agency enforcement, but at the same time, it was our duty and honor to stand up for blockchain software developers in the hour it was most needed,” he said, noting that the company had previously sued the SEC when Ethereum became a target, which led to the SEC dropping their Ethereum investigation.
“We appreciate the SEC’s new leadership and the pro-innovation, pro-investor path they are taking,” Lubin added. He emphasized that the crypto industry seeks US policies that address both consumer and business interests.
The company plans to focus on development moving forward. “Now we can get 100% back to building. 2025 is going to be the best year yet for Ethereum and Consensys,” the founder said.
SEC shifts to case resolution
The latest development in the SEC vs. Consensys case follows a pattern of the SEC dropping cases against several crypto firms in recent weeks. Last week, the SEC and Coinbase reached an agreement to dismiss its lawsuit against the crypto exchange.
The SEC also dropped its investigation into OpenSea, Uniswap Labs, and Robinhood Crypto.
Yesterday, the securities watchdog officially closed its investigation into Gemini and will not pursue enforcement action.
The SEC is exploring a potential settlement with Justin Sun, the founder of TRON, in a civil fraud case. The case involves allegations of unregistered securities sales and market manipulation. Both sides have requested a 60-day pause in legal proceedings to negotiate a resolution.
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