SEC to drop case against MetaMask

The U.S. Securities and Exchange Commission (SEC) has agreed to dismiss its case against MetaMask, according to Consensys founder Joseph Lubin.

The decision, which is still subject to final approval, marks a development in the ongoing regulatory discussions surrounding cryptocurrency.

In a statement posted on X, Lubin expressed relief over the resolution.

Joseph Lubin on X: "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." 

The SEC is expected to file an official request with the court to formally close the case.

MetaMask, one of the world's most popular cryptocurrency wallets, is developed by Consensys, a leading blockchain software company.

The SEC sued Consensys in June 2023, claiming that the company had violated securities laws through its MetaMask staking service. The lawsuit was filed in the U.S. District Court for the Eastern District of New York.

The SEC's decision to drop the case comes due to shift in U.S. crypto regulations since Donald Trump took office.

His administration has been more open to cryptocurrencies, leading to several regulatory changes.

Just last week, the SEC also agreed to dismiss its long-standing lawsuit against Coinbase.

In April 2024, Consensys took legal action against the SEC after the agency classified Ethereum as a security. The lawsuit played a key role in the SEC dropping its investigation into Ethereum.

Lubin praised Consensys' legal team for their efforts and expressed optimism for the future. Adding that 2025 is expected to be a breakthrough year for Ethereum and blockchain innovation.

With regulatory tensions easing, Consensys aims to continue advancing decentralized technology.