Consensys Wins Regulatory Case Against SEC

The U.S. Securities and Exchange Commission (SEC) has dropped its case against Consensys, the developer of Ethereum software and MetaMask, a popular non-custodial wallet. This decision marks another regulatory win for the digital asset industry, as Consensys becomes the latest cryptocurrency and decentralized finance provider to gain relief from a federal investigation.

Background of the Case

The SEC had alleged that Consensys, through its MetaMask wallet, operated as an unregistered securities broker and failed to implement standard consumer protection measures. The case was built on the premise that most cryptocurrencies are securities and must be registered with the SEC, a position strongly advocated by former SEC Chair Gary Gensler.

Consensys was one of several crypto firms scrutinized by the agency in 2024. However, the company challenged the agency’s claims, which led to the dismissal of the case.

Reaction from Consensys Founder

Joseph Lubin, Consensys founder and Ethereum co-founder, expressed his satisfaction with the outcome. “We were committed to fighting this suit until the bitter end but welcome this outcome,” Lubin said.

“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.”

Recent Regulatory Updates

This decision is part of a series of recent updates from the SEC, following the change in leadership. Since Donald Trump took office and acting Chair Mark Uyeda succeeded Gensler, the SEC has dropped its cases against several major crypto service providers, including:

  • Coinbase
  • OpenSea
  • Robinhood
  • Uniswap
  • Gemini

The agency’s Crypto Task Force is also considering closing lawsuits levied against Binance and Tron founder Justin Sun.

What This Means for the Industry

The dismissal of the case against Consensys is a positive development for the digital asset industry, indicating a shift in regulatory approach. As the industry continues to evolve, it is essential to stay informed about the latest developments and regulatory updates.

For more news and updates on the cryptocurrency and blockchain industry, visit Global Crypto News.

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