• Consensys has announced the SEC will drop its case against MetaMask.
• The regulator sued the company over the wallet’s staking feature, alleging securities violations.
• SEC has dropped investigations or cases against Coinbase, Gemini, Robinhood, Uniswap.

The US Securities and Exchange Commission has agreed to drop its case against MetaMask, Consensys founder Joseph Lubin said.

In an announcement posted on X, the Ethereum co-founder noted the regulator and Consensys had agreed to terminate the legal tussle that SEC brought by suing the wallet provider.

“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,” he noted.

The SEC sued Consensys in June 2023, claiming that the company’s staking service via MetaMask violated the US securities laws.

SEC drops numerous crypto lawsuits, probes

Consensys filed a lawsuit against the regulator in April, with the company’s legal team alleging overreach as the SEC reportedly commenced an investigation against Ethereum and for its probe into MetaMask. Per Consensys, the SEC has erred in alleging that Ethereum (ETH) was a security.

The latest move by the SEC adds to a series of developments that have seen it end investigations or drop several cases. It includes legal tussles against Coinbase and Gemini,  and investigations against Uniswap, Robinhood and Opensea.

SEC is taking this direction as the new leadership post-Gary Gensler strikes a pro-crypto and pro-innovation stance.

“We appreciate the SEC’s new leadership and the pro-innovation, pro-investor path they are taking. 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,” Lubin added.

The US Securities and Exchange Commission (SEC) has ended its investigation into Gemini without filing any charges. However, Gemini co-founder Cameron Winklevoss has strongly criticized the agency, accusing it of causing financial and operational harm to the crypto industry.

US SEC Ends Gemini Investigation Without Charges

On Monday, the US SEC informed Gemini’s legal team that it had closed its probe into the cryptocurrency exchange. The investigation lasted 699 days, and the agency had previously issued a Wells Notice to Gemini 277 days ago. Despite the SEC’s decision to drop the case, Winklevoss expressed frustration, arguing that the prolonged scrutiny harmed the company and the broader industry.

“This comes 699 days after the start of their investigation and 277 days after they sent us a Wells Notice,” Winklevoss said in a post on X. “The SEC cost us tens of millions of dollars in legal bills alone and hundreds of millions in lost productivity, creativity, and innovation.”

The US SEC has not provided a public statement on the decision to end its investigation. The case was part of a broader regulatory crackdown on cryptocurrency firms, which also included actions against other major industry players.

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Kelvin Munene Murithi

Kelvin is a distinguished writer with expertise in crypto and finance, holding a Bachelor’s degree in Actuarial Science. Known for his incisive analysis and insightful content, he possesses a strong command of English and excels in conducting thorough research and delivering timely cryptocurrency market updates.

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