In a significant development for the cryptocurrency landscape, Joseph Lubin, co-founder of Ethereum and CEO of Consensys, announced that Consensys has reached an agreement in principle with the U.S. Securities and Exchange Commission (SEC) to dismiss the securities enforcement case concerning MetaMask. The case, which targeted the widely-used cryptocurrency wallet, is poised for formal closure pending approval by the agency.
SEC Ends MetaMask Probe
Lubin took to X to express his satisfaction with the outcome. He noted that while Consensys was ready to contest the lawsuit to its conclusion, the resolution represents a positive turn for blockchain software developers. This announcement comes in the wake of similar actions by the SEC in recent weeks, including dismissals of lawsuits against Coinbase and investigations into other notable entities such as OpenSea, Robinhood, Uniswap, and Gemini. These developments occurred shortly after the resignation of former SEC Chair Gary Gensler on January 20.
Under Gensler’s leadership, the SEC adopted a stringent approach to cryptocurrency regulation, asserting that most digital tokens should be classified as securities. This regulatory stance led to various legal actions against crypto firms, with the watchdog accusing numerous organizations of offering unregistered securities. However, since Gensler’s departure, the SEC appears to be revising its strategy, pulling back from several high-profile cases.
Lubin Welcomes SEC’s Shift
Lubin has indicated that the company’s ongoing lawsuit against the SEC, which aimed at safeguarding Ethereum from becoming a target for enforcement actions, was a crucial influence in the agency’s decision to cease its investigation. He described each victory—both legal and policy-related—as an essential stride toward cultivating an improved financial system and internet infrastructure. Looking to the future, Lubin expressed gratitude for the SEC’s new leadership and its shift towards a more “pro-innovation” and “pro-investor” stance.
“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. Now we can get 100% back to building. 2025 is going to be the best year yet for Ethereum and Consensys. The paradigm shift to a much more decentralized world is accelerating.”
Previously, Lubin criticized the SEC for what he termed an “abuse of power,” especially after Consensys was compelled to lay off 20% of its workforce in October due to broader economic challenges and the significant legal costs incurred during prolonged regulatory disputes.
The ramifications of this agreement extend beyond just Consensys, signaling a potential shift in how cryptocurrency regulations may evolve in the United States. As industry leaders remain optimistic, the future holds promise for innovation and growth within the blockchain space.
