ConsenSys, the company behind the popular MetaMask crypto wallet, has reached an agreement with the U.S. Securities and Exchange Commission (SEC) to dismiss the lawsuit filed against it. The SEC had accused ConsenSys of violating securities laws, but both parties have now agreed to settle and close the case.
Joseph Lubin, founder of ConsenSys, expressed his satisfaction with the resolution, stating that while the company was prepared to continue fighting the lawsuit, they were pleased to have reached an agreement. Lubin further noted that the case will be officially closed once the SEC gives its final approval.
The legal battle began in June of the previous year, when the SEC alleged that MetaMask acted as an unregistered broker by providing staking services for platforms like Lido and Rocket Pool. The SEC contended that these staking programs involved securities, requiring ConsenSys to register with the agency. Prior to this, ConsenSys had filed its own lawsuit against the SEC in April, seeking clarification on whether Ethereum and MetaMask services should fall under regulatory oversight.
Notably, the SEC had dropped its investigation into Ethereum 2.0 just days before filing its lawsuit against ConsenSys, without taking any enforcement action.
Lubin criticized the overreach of certain regulations, emphasizing the company’s duty to advocate for blockchain developers. He expressed hope that this resolution would contribute to the ongoing fight for fair regulations within the crypto industry. Lubin also thanked his legal team and the wider ConsenSys community for their support during the process.
In recent weeks, the SEC has softened its stance on several high-profile crypto cases, including dropping lawsuits against Coinbase and closing investigations into companies such as OpenSea, Uniswap Labs, and Robinhood Crypto. Additionally, the SEC concluded its investigation into Gemini without pursuing legal action, while also planning a discussion with TRON founder Justin Sun regarding potential settlement negotiations over allegations of unregistered securities sales and market manipulation.
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