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The U.S. Securities and Exchange Commission (SEC) plans to drop its enforcement lawsuit against Consensys’ Metamask wallet, CEO Joe Lubin announced Feb. 27, 2025, citing a regulatory pivot under new leadership pending commissioner approval.
Subject to the Approval of the Commission, SEC Dismisses Metamask Lawsuit
The SEC sued Consensys last year, alleging Metamask operated as an unregistered securities broker via its staking and token-swapping services. The agency claimed Metamask Staking facilitated sales of unregistered securities through third-party liquid staking tokens, while Metamask Swaps acted as an unregistered broker by routing trades. Consensys denied the allegations, arguing its software does not custody assets or execute transactions.
On Thursday, Lubin stated the SEC agreed to dismiss the case, mirroring recent dropped actions against Coinbase, Opensea, and several others. The decision aligns with leadership changes following Acting Chairman Mark Uyeda’s appointment in January 2025, who has prioritized a “pro-innovation” stance. Uyeda established a Crypto Task Force led by Commissioner Hester Peirce, signaling a departure from former Chair Gary Gensler’s aggressive enforcement approach.
“I’m pleased to announce that Consensys and the SEC have agreed in principle that the securities enforcement case concerning Metamask should be dismissed,” Lubin wrote. “Subject to the approval of the Commission, the SEC will file a stipulation with the court that effectively closes the case.”
The SEC’s shift follows Consensys’ April 2024 preemptive lawsuit challenging the agency’s jurisdiction over Ethereum, which a Texas court dismissed procedurally in September 2024. Consensys maintains ethereum (ETH) is a commodity, citing a 2018 SEC speech and the Commodity Futures Trading Commission’s oversight.
Industry observers believe the move reflects broader regulatory softening under the Trump administration, which nominated Paul Atkins for permanent SEC leadership. While Lubin stated he was “grateful” for the decision, the outcome awaits formal commissioner approval.