The U.S. Securities and Exchange Commission (SEC) has agreed to dismiss its lawsuit against blockchain software firm Consensys, which sought to classify the company as a broker.
The decision, announced by Consensys on Thursday, signals a shift in the agency’s approach to crypto enforcement. The case centered on MetaMask, a widely used cryptocurrency wallet developed by Consensys.
The SEC had alleged that the company generated over $250 million in fees through staking services and digital asset swaps, leading to the enforcement action. However, the lawsuit is now expected to be formally closed following final approval from the agency.
Consensys’ Legal Battle Influences SEC’s Move
Ethereum co-founder and Consensys CEO Joseph Lubin expressed satisfaction with the outcome, stating on X that while the company was prepared to contest the lawsuit, its resolution represents a positive step for blockchain software developers.
Lubin also noted that Consensys’ own lawsuit against the SEC—aimed at preventing Ethereum from becoming a regulatory target—played a role in the agency’s decision to halt its investigation into the network.
The SEC’s move aligns with a broader trend of reducing regulatory pressure on the crypto industry. Over the past three weeks, the agency has dismissed or paused multiple enforcement actions, including those involving major firms such as Coinbase and Uniswap Labs.
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