SEC Drops Lawsuit Against Consensys, Shifting Cryptocurrency Regulation Stance
The United States Securities and Exchange Commission (SEC) has decided to drop its legal action against Consensys, the company behind MetaMask. This move represents a strategic shift for the agency, signaling a more accommodating approach towards the cryptocurrency industry.
Joseph Lubin, co-founder of Ethereum and founder of Consensys, confirmed that the SEC had filed a request to dismiss the case. While final approval from the commission is still pending, it seems that the matter has been definitively closed. Lubin welcomed the decision, stating, ‘We can now fully focus on building. 2025 will be the best year ever for Ethereum and Consensys. The transition to a more decentralized world is accelerating.’
A Lawsuit That Impacted the Future of MetaMask
The case dates back to June 2024, when the SEC accused Consensys of earning over $250 million in fees through staking services and digital asset exchanges via MetaMask. The agency claimed that these services violated securities laws, leading to the initiation of legal proceedings.
The SEC’s decision to withdraw the complaint aligns with a broader trend, as it has also dropped other lawsuits against crypto companies, including Coinbase, Uniswap, Robinhood Crypto, and Gemini.
A Legal Offensive That Changed the Game
Consensys didn’t just defend its position; it fought back. In April 2024, the company sued the SEC, challenging the regulator’s attempts to classify ETH as a security. According to Consensys’ lawyers, such a classification would have had disastrous consequences for the entire Ethereum network, potentially subjecting every transaction to strict legal constraints.
The company relied on statements from former SEC chairman Gary Gensler, who, in 2018, stated that Ethereum couldn’t be considered a security. This contradiction could have posed challenges for the agency if the case had gone to court.
A Shift in Direction for the SEC?
In June 2024, the SEC had already dropped its investigation into Ethereum—a move that Lubin interpreted as a direct result of Consensys’ lawsuit. Now, with the end of the legal action against his company, the momentum seems to have definitively shifted.
The withdrawal of this case may mark a turning point in cryptocurrency regulation in the United States. While under Gensler’s leadership, the SEC took an aggressive approach, this series of dropped lawsuits suggests a willingness to adapt to a rapidly expanding industry.
Thus, 2025 could witness the emergence of a more favorable regulatory environment for innovation, with Ethereum and Consensys at the forefront of taking advantage.
