SEC drops its case against MetaMask, Consensys says

• Consensys has announced the SEC will drop its case against MetaMask.
• The regulator sued the company over the wallet’s staking feature, alleging securities violations.
• SEC has dropped investigations or cases against Coinbase, Gemini, Robinhood, Uniswap.

The US Securities and Exchange Commission has agreed to drop its case against MetaMask, Consensys founder Joseph Lubin said.

In an announcement posted on X , the Ethereum co-founder noted the regulator and Consensys had agreed to terminate the legal tussle that SEC brought by suing the wallet provider.

“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,” he noted.

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

SEC drops numerous crypto lawsuits, probes

Consensys filed a lawsuit against the regulator in April, with the company’s legal team alleging overreach as the SEC reportedly commenced an investigation against Ethereum and for its probe into MetaMask. Per Consensys, the SEC has erred in alleging that Ethereum (ETH) was a security.

The latest move by the SEC adds to a series of developments that have seen it end investigations or drop several cases. It includes legal tussles against Coinbase and Gemini ,  and investigations against Uniswap, Robinhood and Opensea.

SEC is taking this direction as the new leadership post-Gary Gensler strikes a pro-crypto and pro-innovation stance.

“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 added.