SEC Agrees to Dismiss Case Against Consensys
The US Securities and Exchange Commission (SEC) has reached an agreement in principle to dismiss its securities enforcement case against Consensys, as stated in a Feb. 27 statement.
Resolution Pending Final Approvals
Once final approvals are secured, the SEC will file a stipulation with the court to formally close the case. Consensys’ commitment to contest the allegations has led to this resolution.
CEO Joseph Lubin’s Perspective
Consensys CEO Joseph Lubin views the pending dismissal as a conclusion to the dispute. He emphasized that challenging the agency was a crucial step in supporting blockchain software developers and fostering innovation in the crypto industry.
Lubin said:
“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.”
Focus on Development
Lubin appreciates the SEC’s shift in approach under current leadership, which he sees as more pro-innovation and pro-investor. Consensys remains committed to engaging in constructive dialogue with policymakers to ensure balanced regulation supporting consumer protection and industry growth.
With the regulatory matter resolved, Consensys plans to concentrate on development efforts. Lubin expressed optimism about the future of Ethereum and decentralized technologies, highlighting the acceleration towards a more decentralized financial system.
Background of the Case
The SEC initially filed charges against Consensys on June 28, 2024, alleging the unregistered offer and sale of securities through its MetaMask Staking service and operating as an unregistered broker via both MetaMask Staking and MetaMask Swaps. The complaint stated that Consensys facilitated the sale of unregistered securities for liquid staking providers Lido and Rocket Pool since at least January 2023.
Recent Enforcement Actions
Mark Uyeda’s appointment as the acting chairman of the SEC and the establishment of the regulator’s Crypto Task Force have led to a surge in high-profile enforcement actions. Recently, the SEC reached agreements with Coinbase and Robinhood’s crypto unit to drop their enforcement cases. Additionally, the SEC closed enforcement actions against Uniswap Labs and Gemini, while Tron founder Justin Sun aims to resolve the protocol’s litigation with the regulator.
