"SEC Drops MetaMask Case: ConsenSys Triumphs in Crypto Regulatory Battle"

The US Securities and Exchange Commission (SEC) has agreed to drop its securities enforcement case against MetaMask, following a settlement with ConsenSys, the company behind the popular crypto wallet. The SEC had sued ConsenSys Software, Inc. in June 2024, alleging that MetaMask's interface acted as an unregistered broker due to its swaps and staking services. The SEC also claimed that ConsenSys offered unregistered offerings and sales by acting as an underwriter of liquid staking programs.

The case, which has been ongoing for about a year, is set to close pending approval from the SEC Commission. Joseph Lubin, the founder of ConsenSys, expressed relief at the outcome, noting that the company was prepared to fight the suit to the end but welcomed the resolution. Lubin acknowledged that no company enjoys being targeted by regulators but framed the battle as a duty to defend blockchain developers.

This agreement follows a tumultuous period for ConsenSys and the SEC. In April 2024, ConsenSys took the offensive by suing the SEC to protect Ethereum, the world's second-largest blockchain, from regulatory overreach. ConsenSys argued that Ethereum's vitality and accessibility for developers, market participants, and institutions were at stake. Seemingly, ConsenSys' lawsuit paid off, as it led the SEC to drop a separate investigation into Ethereum.

Lubin praised the efforts of ConsenSys' legal team, led by Matt Corva, and thanked the broader ConsenSys family for their unwavering commitment. Lubin highlighted how every legal win, though hard-fought, paves the way for a better financial system and internet. Lubin sees a shift in the SEC's approach under new leadership, describing it as pro-innovation and pro-investor, a welcome change for the crypto space.

ConsenSys plans to stay engaged with policymakers, pushing for policies that benefit consumers and businesses alike. The company believes the US is on track to embrace crypto's potential. With the lawsuit now behind them, ConsenSys is refocusing on innovation. Lubin predicted that 2025 would be a landmark year for both Ethereum and ConsenSys, pointing to an accelerating shift toward a decentralized world, with ConsenSys at the forefront.

Notably, the timing of the dropping of the lawsuit coincides with MetaMask