US Securities and Exchange Commission Drops Case Against MetaMask

Consensys founder Joseph Lubin said the regulator and his company had agreed to terminate the legal tussle

The US Securities and Exchange Commission will drop its case against MetaMask, Consensys founder Joseph Lubin announced.

Announcing the development on X, the Ethereum co-founder noted that the regulator and Consensys had agreed to terminate the legal tussle that saw the SEC sue the wallet provider.

“I’m pleased to announce that Consensys and the SEC have agreed in principle that the administrative 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.

The SEC sued Consensys in June 2023, claiming that the company’s staking service via MetaMask was in breach of the US securities laws.

Consensys had sued the regulator in April, with the company’s legal team alleging overreach as the SEC reportedly began an investigation against Ethereum and for its probe into MetaMask. According to Consensys, the SEC had erred in stating that Ethereum (ETH) was a security.

The latest move by the SEC comes as the new leadership post-Gary Gensler is keen on rolling back some of the actions taken by the previous administration, especially in its handling of the crypto industry.

This direction has seen the regulator end several investigations or drop cases, which include legal tussles against Coinbase and Gemini, and probes against Uniswap, Robinhood and Opensea.

“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 policymakers going forward.

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.

Lubin noted.