Consensys founder Joseph Lubin announces an agreement between the blockchain firm and the US SEC to end ongoing securities litigation.
In a tweet late Thursday, the Ethereum co-founder announced that the Securities and Exchange Commission has consented to closing its case against MetaMask. Lubin disclosed that the regulatory top dog would drop all securities investigations into the decentralized crypto wallet.
The litigation dismissal is subject to approval by the US SEC, which has yet to officially comment on the claims. According to Lubin, the agency will file a stipulation with the court in the coming days to end the 8-month-old case.
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.…
— Joseph Lubin (@ethereumJoseph) February 27, 2025
Consensys Sees Breakthrough with Reformed SEC
For context, the US SEC filed a lawsuit against blockchain firm Consensys in June for operating as an unregistered broker. The litigation claimed the Web3 developer offered unregistered securities through its wallet, MetaMask.
Notably, the Gary Gensler-led agency classified third-party staking services as securities as they constitute investing money in an enterprise in expectations of returns. As a result, the SEc claimed MetaMask offered unregistered securities to US investors.
However, the new dispensation in the US SEC hierarchy views the enterprise differently. Earlier reports show that the Mark Uyeda-led agency has already enquired about staking from industry leaders, seeking a detailed understanding of how the venture fits into the securities laws.
Lubin welcomed the impending case withdrawal, lauding the SEC’s pro-innovation disposition under its new leadership. While acknowledging that the developer was willing to defend itself in all capacities, the Ethereum co-founder appreciated this new outcome.
Notably, Consensys earlier sued the SEC for its regulatory overreach, particularly towards the Ethereum network. However, a court dismissed the case in September, calling it moot.
XRP Community Clamor Intensifies Amid Growing Dismissal
The Consensys dismissal adds to the growing list of cases the US SEC recently dropped. For perspective, the Wall Street watchdog dismissed its litigation and investigation into Coinbase, Robinhood, Gemini, and OpenSea in the past week.
Meanwhile, the XRP community has intensified its clamor for the end of the Ripple vs. SEC case. A reaction noted that the lawsuit precedes others the regulator recently dropped, asking for a quick end to the litigation.
The Ripple case is among several other high-profile ongoing cases. The SEC has yet to dismiss legal actions against Binance and Kraken.
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