SEC drops Consensys lawsuit
SEC drops Consensys lawsuit
The U.S. Securities and Exchange Commission (SEC) has agreed to drop its lawsuit against Consensys, the Ethereum-focused firm behind MetaMask.
The decision is seen as part of a broader regulatory pivot following new leadership at the agency. The lawsuit, initially filed in June 2024, accused Consensys of violating securities laws by generating over $250 million in fees through MetaMask’s staking services and digital asset swaps.
Ethereum co-founder and Consensys CEO Joseph Lubin confirmed that the SEC will file a motion to formally dismiss the case. “Now we can get 100% back to building. 2025 is going to be the best year yet for Ethereum and Consensys,” Lubin stated, highlighting the industry's optimism toward a more decentralized future.
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Consensys’ countersuit and SEC’s Ethereum investigation
Consensys previously sued the SEC in April 2024, challenging the regulator’s alleged attempts to classify Ether (ETH) as a security. The firm’s attorneys argued that such a move would effectively criminalize ETH transactions and contradict the SEC’s earlier stance.
A pivotal element in the case was former SEC Chair Gary Gensler’s 2018 statements, which indicated that Ethereum was not a security. In June 2024, shortly after Consensys filed its lawsuit, the SEC officially dropped its Ethereum investigation. Lubin credited the legal challenge as a key factor in the regulator’s decision to step back.
The SEC’s decision to withdraw from the Consensys case follows a pattern of dropped lawsuits against other major crypto firms, including Coinbase, OpenSea, and Robinhood. The shift signals a more open stance toward digital assets under the agency’s new leadership.
With regulatory uncertainty easing, Ethereum and its ecosystem could see renewed institutional interest and growth. As Consensys refocuses on development, the crypto industry anticipates further advancements in decentralized finance (DeFi) and blockchain infrastructure.
Read also: SEC and Justin Sun seek court pause to explore resolution in crypto case
