SEC Drops MetaMask Case
SEC Drops MetaMask Securities Case
Consensys, the creator of the popular MetaMask crypto wallet, has announced an agreement in principle with the U.S. Securities and Exchange Commission (SEC) to dismiss the ongoing securities case. Consensys founder Joseph Lubin shared this news on February 27, 2025, stating that the case will be formally closed pending SEC Commission approval.
Key Takeaways
- The SEC has agreed to drop its lawsuit against Consensys, initially filed in June 2024.
- Consensys will refocus on technological development.
The SEC's June 2024 lawsuit accused Consensys of unregistered securities sales and brokerage through MetaMask services. The SEC also alleged that Consensys marketed Lido and Rocket Pool staking programs, whose tokens were deemed securities, further contributing to the alleged non-compliance.
This development follows Consensys' preemptive April 2024 lawsuit against the SEC, seeking declaratory judgments on Ethereum and MetaMask. The SEC concluded its Ethereum 2.0 probe ten days before filing the Consensys lawsuit, without taking enforcement action.
Joseph Lubin expressed relief at the dismissal, highlighting Consensys' commitment to defending blockchain developers and welcoming the SEC's apparent shift toward pro-innovation policies. He emphasized the industry's need for US regulations that serve both consumer and business interests.
Consensys intends to concentrate on development, aiming to make 2025 a successful year for Ethereum and the company.
SEC Shifts to Case Resolution
The dismissal of the Consensys case is part of a recent trend of the SEC dropping cases against several crypto companies. Last week, a similar agreement led to the dismissal of the SEC's case against Coinbase. The SEC also dropped investigations into OpenSea, Uniswap Labs, and Robinhood Crypto. The SEC officially closed its investigation into Gemini on [Date], without pursuing enforcement.
The SEC is currently exploring a potential settlement with Justin Sun, founder of TRON, in a civil fraud case involving allegations of unregistered securities sales and market manipulation. A 60-day pause in legal proceedings has been requested to facilitate negotiations.
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