U.S. SEC to Drop MetaMask Case, Says Consensys Founder

The U.S. Securities and Exchange Commission (SEC) has agreed in principle to drop its securities enforcement case against MetaMask, according to Joseph Lubin, founder of blockchain firm Consensys.

In a February 27 X post, Lubin stated that though they are waiting for a final decision from the regulator, the decision signals the end of the legal battle between the two parties.

I’m pleased to announce that Consensys and the SEC have agreed in principle that the securities enforcement case concerning MetaMask should be dismissed. Subject to the approval of the Commission, the SEC will file a stipulation with the court that effectively closes the case.…

— Joseph Lubin (@ethereumJoseph) February 27, 2025

Consensys had been accused of operating as an unregistered securities broker as part of a wider crackdown led by former SEC Chair Gary Gensler. Lubin noted that while the company was prepared to fight the case, it welcomed the resolution. He described defending blockchain developers as both a duty and an honour, emphasizing that regulatory challenges have long been a hurdle for the industry.

The dispute was closely tied to broader concerns about the SEC’s stance on Ethereum, leading Consensys to file its own lawsuit against the agency. Lubin credited this legal action with prompting the SEC to drop its Ethereum investigation, calling it a major victory for the crypto sector. He also welcomed what he described as a shift in the SEC’s approach under its current leadership, noting a more pro-innovation and pro-investor stance.

With the case nearing its conclusion, Lubin said Consensys is focused on the future, predicting that 2025 will be a pivotal year for Ethereum and the broader push toward decentralization.

This development comes amid the SEC’s easing of crypto enforcement, as the agency has dropped cases against Uniswap, Coinbase, and Robinhood. It also ended its nearly 700-day probe into Gemini’s Earn program, a move co-founder Cameron Winklevoss called a victory against regulatory overreach. Additionally, OpenSea CEO Devin Finzer confirmed the SEC had closed its case against the NFT marketplace, warning that classifying NFTs as securities could have stifled innovation in the space.