SEC Drops Yet Another Case Against A Major Crypto Firm

The US SEC is waiting to ‘redeem’ itself for its past crimes. Therefore, it is dismissing past cases left and right. In a new development in the similar vein, SEC is looking to drop its case against ETH developer Consensys. This marks yet another regulatory win for the crypto community of the USA.  

The dropping of Consensys Lawsuit by SEC is another historic milestone for the crypto community. The MetaMask creator can finally rest easy as it does not have to worry about the SEC breathing down its back. The news of this dismissal came on February 27th, amidst a crypto market downturn.  

Consensys founder and Ethereum co-founder, Joseph Lubin broke the news. Lubin said that both involved parties have reached an in-principal agreement stage in order to end the probe. The case was registered back in 2024. That year saw some of the worst crypto crackdowns in the history of the US.  

Consensys Lawsuit Details 

Consensys was accused of using its MetaMask non-custodial wallets to work as an unregistered securities broker. SEC also claimed that the firm failed to implement consumer protection measures as deemed necessary by the regulatory body. Former Chair Gary Gensler strongly advocated that securities and cryptocurrencies must be registered with the SEC. However, Consensys violated that requirement.  

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

Lubin shared the news in a lengthy post on X, saying, “I’m pleased to announce that Consensys and the SEC have agreed in principle that the securities enforcement case concerning MetaMask should be dismissed”. He added, “Subject to the approval of the Commission, the SEC will file a stipulation with the court that effectively closes the case. We were committed to fighting this suit until the bitter end but welcome this outcome.” 

SEC has already dropped cases against firms like Gemini, Uniswap, Robinhood, OpenSea and Coinbase. Hence, this new dismissal marks yet another win for the crypto community. Therefore, analysts believe this could reverse the market downturn.