The U.S. Securities and Exchange Commission (SEC) has agreed to drop its lawsuit against Consensys, a blockchain software company founded by Ethereum co-founder Joseph Lubin.
The U.S. Securities and Exchange Commission (SEC) has agreed to drop its lawsuit against Consensys, a blockchain software company founded by Ethereum co-founder Joseph Lubin. The lawsuit, filed in June 2024, accused Consensys of violating securities laws by offering staking services and digital asset swaps through its MetaMask wallet, allegedly generating over $250 million in fees. The SEC’s decision to dismiss the case must still be approved by its commissioners.
Lubin confirmed the development, saying the company can now fully focus on building its projects. He called 2025 a crucial year for Ethereum and Consensys, as the shift toward decentralization gains momentum. The SEC will not impose any fines or conditions on the company as part of the case’s dismissal.
Consensys attorney Bill Hughes described the agreement as straightforward and attributed the SEC’s reversal to changes in leadership following the U.S. presidential election. He said the regulatory approach shifted post-election and credited the Trump administration’s pro-crypto stance for influencing the agency’s decisions.
This is the latest in a series of dropped cases against crypto firms. The SEC recently closed its investigations into Uniswap, Robinhood Crypto, and Gemini, and has asked courts to pause ongoing cases against Binance and the Tron Foundation.
Consensys had previously sued the SEC in April 2024 over what it claimed was an attempt to classify Ether as a security. The company argued that such a move would criminalize everyday Ethereum transactions and accused the SEC of overreach. Lubin believes that lawsuit played a role in the SEC’s June 2024 decision to close its Ethereum investigation, preventing the agency from revisiting former SEC Chair Gary Gensler’s 2018 statement that ETH was not a security.
Lubin said Consensys was prepared to fight the SEC’s lawsuit but welcomed the agency’s decision to dismiss it. He acknowledged that no company wants to face enforcement action but viewed it as an obligation to stand up for blockchain developers.
Since Gensler’s departure, the SEC has been shifting its regulatory stance under Acting Chair Mark Uyeda. Uyeda launched a Crypto Task Force, led by Commissioner Hester Peirce, known for her pro-crypto stance. Peirce recently outlined the SEC’s plan to rework its crypto regulations, urging firms to be patient while the agency reassesses its legal actions.
Lubin expressed appreciation for the SEC’s new leadership and its pro-innovation approach. He reaffirmed Consensys’ commitment to working with policymakers to create a regulatory framework that benefits both businesses and consumers.
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