U.S. Securities and Exchange Commission (SEC) Drops Its Lawsuit Against Consensys

The U.S. Securities and Exchange Commission (SEC) has officially dropped its lawsuit against Consensys. Joseph Lubin, co-founder of Consensys, confirmed the development

The U.S. Securities and Exchange Commission (SEC) has officially dropped its lawsuit against Consensys. The news was confirmed by Joseph Lubin, co-founder of Consensys, on February 27th.

According to a report by Law360, the SEC and Consensys have agreed in principle to halt the litigation. The agency will file a stipulation with the court, effectively closing the case, subject to the approval of the Commission.

Lubin expressed his gratitude for the outcome, adding that it was an honor for Consensys to defend the industry. He also spoke about the importance of collaboration between regulators and industry leaders to encourage innovation.

Consensys Lawsuit Background and Lubin’s Response

The SEC initially filed the lawsuit against Consensys in June 2023. The agency claimed that Consensys was operating as an unregistered broker for securities, specifically with its MetaMask wallet and staking programs. This case was one of several high-profile legal battles the SEC waged against crypto companies during the tenure of former Chair Gary Gensler.

However, following Gensler’s resignation and the arrival of new regulatory leadership, there has been a major shift in the SEC’s stance. The agency has recently dropped several lawsuits against other cryptocurrency companies, signaling a more balanced approach to regulation.

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The Interagency Working Group on Digital Assets, composed of the SEC, the Commodity Futures Trading Commission (CFTC), and the Treasury Department, has also been tasked by President Biden to provide recommendations for crypto regulation by March 1.

SEC’s Change in Approach: Implications for Crypto

Lubin welcomed the changes, stating:

“No company wants to be the target of agency enforcement, but at the same time, it was our duty and honor to stand up for blockchain software developers in the hour it was most needed, as I’m sure our industry peers who also stood up against regulatory overreach would tell you,”

He sees the resolution of this case as a crucial moment for the cryptocurrency sector, adding that it bodes well for regulatory clarity and the continued growth of the industry.

SEC Lawsuit Dismissals: Binance, Coinbase, Robinhood, Uniswap

Under interim Chair Mark Uyeda and Commissioner Hester Peirce, the SEC has dropped investigations and lawsuits against several major crypto companies. These include Tron Foundation, Gemini, and the NFT marketplace OpenSea.

Additionally, the SEC and Binance filed a joint motion to pause their ongoing litigation for 60 days to seek regulatory clarity. Coinbase’s CEO Brian Armstrong confirmed that the SEC had dropped its lawsuit against the exchange, while Robinhood announced that the SEC had closed its investigation into its crypto operations. The SEC also officially closed its investigation into Uniswap without bringing any charges.

Related: Robert F. Kennedy Jr. Vows to End White House War Over Bitcoin

This new direction from the SEC has sparked optimism within the industry. Many hope that this signals a move toward stability and clarity, setting the stage for further innovation and growth in the blockchain space.

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