In a major regulatory reversal, the SEC is set to drop its case against ConsenSys, the company behind MetaMask, signaling a broader shift in crypto oversight. The decision marks yet another step in the agency’s retreat from its aggressive “regulation by enforcement” approach, which defined its stance under former Chairman Gary Gensler.
Joseph Lubin, founder of ConsenSys, confirmed the news on X, stating that the SEC’s commissioners still need to formally approve the dismissal before the case is officially closed.
“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.”
A ConsenSys representative further clarified that the SEC would not impose any fines on the company.
The lawsuit, filed in June 2024, alleged that MetaMask functioned as an unregistered securities broker and facilitated illegal securities sales. This legal challenge came just weeks after the SEC had already backed off from another probe into Ethereum 2.0, following pushback from ConsenSys. The firm had sued the agency earlier that year, arguing that its efforts to classify Ethereum transactions as securities exceeded its regulatory authority.
Broader Regulatory Trends
The dismissal of the ConsenSys lawsuit is part of a series of actions indicating a more lenient regulatory approach toward the cryptocurrency industry. Following the inauguration of President Donald Trump, the SEC has undergone significant leadership changes, including the departure of former Chair Gary Gensler and the appointment of Acting Chairman Mark Uyeda. Under Uyeda’s direction, the SEC has established a “crypto task force” led by Commissioner Hester Peirce, who is known for her pro-crypto stance. This task force aims to develop clear and transparent policies for digital assets, moving away from the enforcement-driven approach of the previous administration.
With this latest dismissal, the SEC continues to walk back several high-profile enforcement actions. In recent months, the regulator has dropped cases against Coinbase, Uniswap Labs, OpenSea, and Robinhood Crypto, while also requesting courts to pause ongoing lawsuits against Binance and the Tron Foundation. This shift suggests a strategic repositioning under the commission’s new leadership, moving away from litigation-heavy oversight toward a policy-driven regulatory framework.
“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 policy makers going forward,” Lubin Wrote.
“Crypto wants the U.S. to address the best interests of consumers and businesses alike, and we are already on our way to making that happen.”
Quick Facts:
- The SEC has dismissed its lawsuit against ConsenSys, the developer of MetaMask, signaling a shift in regulatory approach.
- This decision is part of a broader trend of the SEC dropping cases against major crypto companies under its new leadership.
- The agency has established a “crypto task force” aimed at developing clear policies for digital assets, moving away from previous enforcement-focused strategies.
