Consensys Triumphs as SEC Walks Away from Legal Fight

The SEC is set to dismiss its lawsuit against Consensys, marking a turning point in the regulatory battle over MetaMask’s compliance with securities laws.

Joseph Lubin, co-founder of Ethereum and head of Consensys, revealed that the agency has agreed to drop the case, though the final approval process is still ongoing.

Lubin welcomed the development, emphasizing that Consensys can now concentrate entirely on expanding its projects. He predicted a breakthrough year in 2025, with Ethereum and Consensys driving the push toward greater decentralization.

Regulators had targeted Consensys in mid-2024, accusing the company of profiting extensively—over $250 million—from MetaMask’s staking services and digital asset exchange features. However, the SEC’s decision to step back aligns with its recent pattern of retreating from enforcement actions against major crypto firms, including Uniswap, Robinhood Crypto, and Gemini.

Prior to this, Consensys had taken the offensive, launching a lawsuit against the SEC in April 2024. The company challenged attempts to classify Ether as a security, arguing that such a move would severely disrupt the Ethereum network and criminalize ordinary transactions.

By June, the SEC had also abandoned its investigation into Ethereum itself. Lubin credited this reversal to Consensys’ legal efforts, pointing out that the case would have put a spotlight on past statements from former SEC chairman Gary Gensler—who had previously indicated that Ether was not a security.