Consensys and the U.S. Securities and Exchange Commission (SEC) have reached an agreement in principle to dismiss the agency’s enforcement case against the blockchain software firm, according to statements from Consensys CEO Joseph Lubin.
The case, which targeted MetaMask’s staking service, is pending formal approval by the SEC Commission.
The lawsuit, filed in June 2024 under former SEC Chair Gary Gensler, alleged that Consensys operated as an unregistered broker by facilitating the offering and sale of unregistered securities through MetaMask’s staking services.
Notably, Consensys denied the allegations and vowed to fight the case in court. Lubin stated that while the company was prepared to continue its legal battle, it welcomes the decision to end the lawsuit.
“We were committed to fighting this suit until the bitter end but welcome this outcome,” Lubin said. “No company wants to be the target of agency enforcement, but it was our duty to stand up for blockchain software developers.”
SEC and Consensys: Regulatory Shift Under the Trump SEC
Under the Trump administration’s SEC, now led by acting Chair Mark Uyeda, the agency has taken a more lenient approach to cryptocurrency regulation.
Several high-profile enforcement actions initiated under Gensler’s tenure have been either dismissed or resolved in recent weeks. Last week, the SEC reached an agreement with Coinbase to end its legal battle over alleged securities violations. Investigations into Robinhood’s crypto unit, Gemini, Uniswap, and NFT platform OpenSea have also been closed.
Lubin noted that the lawsuit played a role in pressuring the SEC to drop its investigation into Ethereum, which had been under scrutiny regarding its classification as a security.
“Every legal and policy win might be hard fought, but each is an important step toward a better financial system and a better internet,” he added.
Read Also: SEC Drops OpenSea Investigation, Signaling Shift in Crypto Regulation
Future Outlook for Consensys and Ethereum
The shift in regulatory approach signals a broader change in the SEC’s stance toward cryptocurrency under the current administration. The agency has yet to resolve pending lawsuits against Ripple, Binance, and Kraken, but industry observers believe those cases may also be settled soon.
“We appreciate the SEC’s new leadership and the pro-innovation, pro-investor path they are taking,” Lubin said. “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.”
With the lawsuit behind it, Consensys is now focused on expanding its Ethereum-based offerings. Lubin expressed optimism about the future, stating, “2025 is going to be the best year yet for Ethereum and Consensys. The paradigm shift to a much more decentralized world is accelerating.”
