- Consensys announced that the SEC will drop its case against MetaMask.
- The regulator had sued the company over the wallet’s staking feature, alleging securities law violations.
- The SEC has also dropped investigations or cases against Coinbase, Gemini, Robinhood, and Uniswap.
The U.S. Securities and Exchange Commission has agreed to withdraw its lawsuit against MetaMask, Consensys founder Joseph Lubin said.
In a statement posted on X, the Ethereum cofounder noted that the regulator and Consensys have reached an agreement to end the legal dispute the SEC filed against the wallet provider.
“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 Commission’s approval, the SEC will file a stipulation with the court that effectively closes the case,” he said.
The SEC sued Consensys in June 2023, alleging that the company’s staking service offered through MetaMask violated U.S. securities laws.
SEC drops multiple crypto cases and investigations
Consensys filed a suit against the regulator in April, with the company’s legal team arguing the SEC had overstepped by opening an investigation into Ethereum and by pursuing enforcement action against MetaMask.
Consensys disputed the SEC’s claim that Ethereum (ETH) is a security. The agency’s latest move is part of a broader trend of investigations being closed or cases being dropped. Recent developments include legal battles involving Coinbase and Gemini, and probes into Uniswap, Robinhood, and OpenSea.
The SEC appears to be shifting direction under new post-Gary Gensler leadership that has signaled a more pro-crypto, pro-innovation stance.
“We appreciate the new leadership at the SEC and the pro-innovation, pro-investor path they are pursuing. We will remain deeply engaged going forward with public and private policymakers. Crypto wants the U.S. to address the best interests of consumers and businesses alike, and we are already on that path,” Lubin added.