- Consensys founder Joseph Lubin has announced that the SEC will drop its lawsuit against the company over its MetaMask platform
- The case centeres on allegations that MetaMask facilitated the sale of unregistered securities through its staking service
- Lubin sees this as a positive shift in regulatory attitudes, calling 2025 “the best year yet for Ethereum and Consensys”
The U.S. Securities and Exchange Commission (SEC) has decided to dismiss its lawsuit against Consensys, according to company founder Joseph Lubin. The lawsuit accused MetaMask, Consensys’ popular crypto wallet, of operating as an unregistered broker for staking services. Lubin framed the decision as a victory for Ethereum and the broader crypto ecosystem, suggesting it marks a shift in regulatory attitudes. When ratified, the decision will see Consensys become the latest in a string of crypto companies to have their cases dismissed by the new-look agency.
“Back to Building”
Lubin announced on X that the SEC has agreed to drop its case against Consensys “in principle,” with a formal dismissal due next week:
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 stated that Consensys appreciate the “new leadership and the pro-innovation, pro-investor path” being taken by Trump’s SEC, expressing relief that his company could now refocus on development:
Now we can get 100% back to building. 2025 is going to be the best year yet for Ethereum and Consensys.
SEC Said that MetaMask Was Unregistered Broker
The lawsuit against MetaMask, filed in mid-2024, alleged that Consensys facilitated the sale of unregistered securities through MetaMask’s staking feature. The Gary Gensler-run agency claimed that by allowing users to stake ETH with providers like Lido and Rocket Pool, MetaMask was operating as an unregistered broker. This action was part of the SEC’s broader crackdown on crypto firms during former Chair Gary Gensler’s tenure.
Consensys pushed back against the allegations, arguing that its technology merely provided access to decentralized services and did not qualify as a broker. The company also claimed the SEC was overstepping its authority by attempting to regulate staking under securities law. If, as expected, the case is pulled next week, we will never know a judge would have ruled on the matter.
With the SEC backing down, Consensys can now continue building Ethereum-based solutions without legal uncertainty. The same goes for all the other entities in the NFT and crypto worlds who have seen their cases dropped in the past 10 days as the SEC looks to wipe away all traces of the Gensler era.
