In a surprising turn of events, the U.S. Securities and Exchange Commission (SEC) has decided to withdraw its lawsuit against Consensys, the blockchain company behind the popular Metamask wallet.
The case, which accused Metamask of operating as an unregistered broker, has now been abandoned, signaling what many see as a broader shift in the SEC’s regulatory approach toward crypto.
Consensys CEO Joseph Lubin confirmed that the SEC will soon file an official stipulation of dismissal, officially ending the case. Lubin welcomed the move, crediting it to the agency’s new leadership and evolving stance on digital assets.
Regulatory Rollback: SEC Retreats from Crypto Crackdowns
The decision to drop the Consensys lawsuit follows a series of SEC reversals regarding crypto-related enforcement. In just the past few weeks, the agency has:
- Dropped its lawsuit against Coinbase, the largest U.S.-based crypto exchange
- Ended investigations into Robinhood and Uniswap Labs
- Closed cases against several other crypto firms
This shift comes after Gary Gensler’s departure as SEC Chair in January 2025, an event that appears to have triggered a change in regulatory strategy.
Under Acting Chair Mark Uyeda, the agency seems to be moving away from aggressive enforcement actions and toward a more balanced regulatory approach. The anticipated nomination of Paul Atkins, a former SEC commissioner known for his crypto-friendly stance, has only added to speculation that the agency is rethinking its previous hardline position.
Ethereum, Ripple, and the Future of Crypto Regulation
The SEC’s decision to drop the Consensys lawsuit has been met with optimism within the Ethereum community, with many seeing it as a victory for decentralized finance (DeFi).
However, uncertainty still lingers around the SEC’s appeal in the Ripple case, which remains one of the most high-profile crypto legal battles.
Attorney Jeremy Hogan pointed out that Ripple’s lawsuit is at a more advanced legal stage than those that were recently dismissed. Because of this, it may take longer to resolve, even if the SEC ultimately decides to withdraw its appeal.
Hogan summarized the situation, saying: “First in, last out.”
With the SEC pulling back on multiple crypto lawsuits, many are wondering: Is this the beginning of a more favorable regulatory environment, or just a temporary shift in tactics?
Reece Conner
Reece Conner is a leading expert in the cryptocurrency industry, known for delivering cutting-edge insights and practical guidance to both newcomers and seasoned investors. With a background in finance and technology, Conner bridges the gap between complex blockchain concepts and real-world applications.