- Consensys has announced that the SEC will drop its case against MetaMask.
- The regulator sued the company over the wallet’s staking feature, alleging securities violations.
- The SEC has also dropped investigations or cases against Coinbase, Gemini, Robinhood and Uniswap.
The US Securities and Exchange Commission has agreed to dismiss its lawsuit against MetaMask, Consensys founder Joseph Lubin said. In a statement posted on X, the Ethereum co‑founder noted that the regulator and Consensys have agreed in principle to resolve the legal dispute brought by the SEC against the wallet provider.
“I am pleased to announce that Consensys and the SEC have reached an agreement in principle to dismiss the securities enforcement action concerning MetaMask. 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 US securities laws.
SEC drops multiple crypto cases and investigations
Consensys had filed a suit against the regulator in April, arguing the SEC exceeded its authority when it initiated an inquiry into Ethereum and its investigation of MetaMask.
According to Consensys, the SEC was wrong to claim that Ethereum (ETH) is a security. The agency’s latest move follows a series of developments in which investigations were closed or cases were dropped against several crypto firms.
These include legal battles involving Coinbase and Gemini, as well as probes into Uniswap, Robinhood and OpenSea. The SEC’s shift comes as new leadership following Gary Gensler adopts a more pro‑crypto and pro‑innovation stance.
“We appreciate the SEC’s new leadership and the pro‑innovation, pro‑investor path they are taking. We will remain deeply engaged with public and private policymakers going forward. The crypto industry wants the United States to serve the best interests of both consumers and businesses, and we are already working to make that a reality,” Lubin added.