The Securities and Exchange Commission (SEC) has dropped yet another lawsuit against the American crypto company. This is because regulators continue to make a strategic retreat from the so-called “regulatory” approach to crypto regulations taken under the leadership of former chairman Gary Jensler.
Joe Lubin, CEO of Brooklyn-based Crypto Software Company Consensys, said on X-Post Thursday that the SEC agreed to remove an ongoing securities enforcement lawsuit against Consensy’s Metamask Wallet Tool. Similar to the agency’s decision to withdraw the lawsuit against Crypto Exchange Coinbase, announced last week, the move must first be approved by the agency’s commissioner.
“We were committed to fighting this lawsuit until the bitter end, and we welcomed the outcome. While companies don’t want to be targets for agency enforcement, we are also confident that our industry colleagues will stand up to regulatory over-reading will tell you, it was our duty and honor,” Rubin wrote.
The SEC sued Metamask last June, claiming that the popular wallet tool was an unregistered securities broker “engaged in securities offers and sales.” The lawsuit informed Consensys about two weeks later that the SEC would shut down an investigation into Ethereum 2.0, which had previously filed a regulatory inquiry in April 2024.
The SEC’s decision to remove enforcement lawsuits against Consensy is the latest in a series of dropped cases and investigations against crypto companies such as Gemini, Robinhood Crypto, Uniswap Labs, Opensea and Coinbase. The court is also asked to suspend ongoing lawsuits against Binance and the Tron Foundation, as well as its affiliates and executives.
The agency is currently reassessing its approach to cryptography under the new leader of delegate chairman Mark Weda, who created the Cryptody Task Force a day after Gensler’s departure. In a statement earlier this month, Peirce created the SEC roadmap for Crypto regulations, urging businesses to be patient as government agencies have found ways to “resolve” themselves from ongoing lawsuits.
“We are grateful for the new leadership of the SEC and the pro-investment pass they are taking,” Rubin wrote. “We are deeply involved with public and private policymakers going forward. Crypto hopes that the US will deal with the best interests of consumers and businesses alike, and we are already on the way to make that happen.”
The SEC declined to comment.
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