The U.S. Securities and Exchange Commission (SEC) has agreed to drop its lawsuit against Consensys over MetaMask’s operations. The case, the sixth related to the crypto industry to be dropped by the regulatory agency, marks a shift in SEC policy under interim leadership of Mark Uyeda.
Joseph Lubin, CEO of Consensys, announced in a post on X that the SEC will drop the lawsuit against his company, developer of the MetaMask digital wallet. Recall that the US securities regulator alleged that MetaMask acted as an unregistered securities broker by offering crypto-asset staking and swap services, which would have generated revenues of over $250 million.
However, the case has taken a major turn after the SEC's decision to withdraw the lawsuit. Although this decision is pending final approval, it joins five other previous cases against cryptocurrency companies and projects, such as Opensea, Uniswap, Coinbase and Gemini, which have also been abandoned by the agency recently.
PREPARE YOUR WALLETThe decision to drop these lawsuits comes under the interim presidency of Mark Uyeda, appointed by Donald Trump after the resignation of Gary Gensler, who pushed a "regulation by enforcement" approach that included more than 100 lawsuits against the crypto sector. Lubin described withdrawal as a sign that the SEC is now looking to prioritize innovation after years of legal battles.
The origin of the lawsuit against Consensys: MetaMask's operations
The lawsuit filed by the SEC in June 2024 against Consensys focused on two key aspects. The first, the staking function, or participation in blockchain networks to validate transactions, and the Crypto Asset Swaps via MetaMask.
According to the securities regulator, these activities required registration as a securities broker, something Consensys never did. The company, founded by Lubin, who is one of the co-founders of Ethereum, argued that MetaMask is an open source software and not an intermediary entity subject to stock market regulation.
The controversy escalated when the SEC indirectly linked Ether (ETH) as a security, contradicting 2018 statements by its former director Gary Gensler, who claimed that the cryptocurrency did not fit that category. In response, Consensys sued the SEC in April 2024, alleging regulatory overreach. This legal backlash reportedly influenced the regulator’s decision to close the investigation into Ethereum 2.0 weeks before dropping the main complaint.
The case reflected deep tensions, with the SEC believing that any service involving financial returns should adhere to traditional rules, while the industry argued that decentralized tools did not fit into frameworks designed for centralized markets.
A pattern of certainty: 6 crypto lawsuits dismissed in less than a month
Since Mark Uyeda took over as acting chairman of the SEC, following the inauguration of Donald Trump as President of the United States in January 2025, the regulator has withdrawn lawsuits against six companies and projects in the crypto world, including Uniswap, Opensea, Coinbase, and Gemini. This strategy contrasts with the Gensler era, which saw legal action against projects like Ripple predominate.
Analysts say the change is a response to political pressure, given Trump's campaign promises of End Gensler's 'Regulatory War' and the need to ensure the development of innovation, to position the United States as a global technological leader.
Together with Commissioner Hester Peirce, a well-known pro-crypto advocate and leader of the agency’s digital assets working group, Uyeda aims to design regulatory standards tailored to the sector that protect investors without undermining innovation.
INVITE AND WINSEC pivots to new regulatory approach
The appointment of Mark Uyeda as acting chairman has marked a shift in the SEC’s stance toward cryptocurrencies and digital assets. Uyeda, commissioner since 2022, publicly questioned Gensler’s “regulation by enforcement,” calling it undermining innovation. In January, he pushed for the creation of a working group to rewrite rules, prioritizing collaboration with the CFTC, the agency that regulates derivatives and commodities in the country, and with players in the sector.
This approach has been welcomed by the industry. Lubin commented:
“We appreciate the SEC’s new leadership and the pro-innovation, pro-investor path they are taking.”
With these words, the CEO of Consensys acknowledged the willingness of the new regulatory leadership to foster dialogue in support of financial and technological innovation and growth, allowing companies like Consensys to fully develop and rebuild 100% to ensure a better financial system and a better Internet.
BUY ETH HEREThe dropping of the lawsuit against Consensys thus reinforces the perception that the SEC is re-evaluating its relationship with the cryptocurrency industry, which may translate into less legal risk for companies and developers looking to innovate in this sector with new products.
However, the regulatory future of cryptocurrencies in the United States will remain uncertain until lawmakers and regulators establish clear guidelines for operations in this emerging market.
Investing in cryptoassets is not fully regulated, may not be suitable for retail investors due to high volatility and there is a risk of losing all invested amounts.
