SEC Drops 6th Crypto Case, Dismisses MetaMask Lawsuit Against Consensys

• The SEC continues to shift its stance, dropping its lawsuit against MetaMask and Consensys.
• New leadership signals a more collaborative approach, benefiting the broader crypto industry.

In a significant development for the cryptocurrency industry, following the most recent CNF report on the U.S. Securities and Exchange Commission (SEC) dropping its investigation into Gemini after 699 days of scrutiny, Consensys and the SEC have now reached an agreement to dismiss the enforcement case concerning MetaMask, Consensys’ widely used crypto wallet.

This decision reflects a broader shift in the SEC’s regulatory approach under its new leadership and has received a positive reaction from the community. In a recent tweet, Joseph Lubin shared:

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.

SEC Withdraws MetaMask Lawsuit

Previously, CNF highlighted that in 2024, the SEC filed a lawsuit against Consensys, alleging that MetaMaskoperated as an unregistered securities broker, particularly focusing on its staking services.

The regulator claimed that Consensys earned over $250 million in fees from digital asset swaps and staking services without proper registration.

Regulatory Shift Under New SEC Leadership

According to Politico.com, this dismissal is part of a series of recent actions indicating a change in the SEC’s stancetoward cryptocurrency regulation.

Under the new administration, the SEC has dropped cases against several prominent crypto firms, including: Coinbase, Uniswap, Gemini, OpenSea, Robinhood Crypto

Acting SEC Chair Mark Uyeda, who assumed the role following Gary Gensler’s departure, has initiated a revised regulatory strategy focusing on industry collaboration rather than legal confrontations.

Consensys’ Proactive Legal Measures

Prior to the SEC’s lawsuit, Consensys had already taken a proactive stance by suing the SEC in April 2024. The company sought clarity on Ethereum’s regulatory status, challenging the agency’s attempt to classify Ethereum as a security.

According to a post on Consensys.io, Lubin credited this legal action as a pivotal factor in the SEC’s decision to drop its investigation into Ethereum in June 2024. He emphasized the importance of defending blockchain developers, stating:

We were committed to fighting this suit until the bitter end but welcome this outcome.

Implications for the Crypto Industry: Ethereum (ETH)

The SEC’s recent actions suggest a more collaborative and less adversarial approach to cryptocurrency regulation. As the native cryptocurrency of the Ethereum network, Ether (ETH) plays a central role in the ecosystem that includes MetaMask.

As of now, Ethereum (ETH) is trading at approximately $2,132.50, reflecting a 7.80% decrease in the past day.