SEC Drops Lawsuit Against Consensys, the Developer of MetaMask

The U.S. Securities and Exchange Commission (SEC) has decided to drop its lawsuit against Consensys, the developer of MetaMask.

The U.S. Securities and Exchange Commission (SEC) has decided to drop its lawsuit against Consensys, the developer of MetaMask, according to a report by CCN.

The case, which began earlier this year, focused on whether MetaMask violated any security standards. The SEC still needs to decide on the case and request a formal termination.

Joseph Lubin, founder of Consensys and co-founder of Ethereum, announced the news on his official X account.

"We are pleased to announce that Consensys and the SEC have reached an agreement in principle to resolve the SEC's lawsuit against Consensys and to terminate the SEC's investigation of Ethereum.

Consensys took legal action against the SEC because we believed the SEC's investigation of Ethereum was overbroad and would unduly burden the development of the crypto ecosystem. We are grateful that the SEC has seen fit to close its investigation of Ethereum. To the best of our knowledge, this is the first time the SEC has dropped an investigation of Bitcoin in response to a legal challenge.

We are also grateful to the other business leaders who stood up to protect their industries from similar legal pressure. In his message, Lubin highlighted the importance of protecting the workers who are building a more advanced financial architecture.

"This case was a distraction from the urgent work of regulating the crypto markets in a way that supports innovation and protects investors," he added.

The SEC has dropped several of its cases in recent times. It closed its investigation of Robinhood and allowed operations to continue with digital assets.

Experts say this shows the SEC is changing its approach to enforcement matters. The securities agency now seems to be focused on completing its strategy for crypto rulemaking rather than continuing to carry out broad legal action.

The court dismissed charges from its case against Coinbase just as it did with its previous lawsuit. The SEC also closed its case against OpenSea, which operates as a major digital currency company.

This signals that the SEC may be taking a softer stance in handling crypto cases rather than continuing to pursue a tougher approach.

These recent developments suggest that the SEC will be adopting different guidelines to govern the activities within the cryptocurrency market.

While some legal uncertainties remain, each dropped case marks progress toward a more stable and clearly defined regulatory environment.