The US Securities and Exchange Commission (SEC) has agreed in principle to dismiss its securities enforcement case against Consensys, according to a Feb. 27 statement.
Once final approvals are secured, the SEC will file a stipulation with the court to formally close the case. The resolution follows Consensys’ commitment to contest the allegations.
Consensys CEO Joseph Lubin said the dismissal, which is still pending final approvals, concludes the dispute. He added that the decision to challenge the agency was a broader effort to support blockchain software developers and protect innovation within 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.”
Development efforts
The Consensys CEO expressed appreciation for the SEC’s shift in approach under its current leadership, which he described as more pro-innovation and pro-investor.
He also reaffirmed the firm’s commitment to constructive dialogue with public and private policymakers to ensure balanced regulation supporting consumer protection and industry growth.
With the regulatory matter concluded, Consensys plans to focus entirely on development efforts. Lubin indicated that the firm is optimistic about the future of Ethereum and decentralized technologies, emphasizing the acceleration of the shift toward a more decentralized financial system.
The SEC filed charges against Consensys on June 28, 2024, alleging that the company engaged in the unregistered offer and sale of securities through its MetaMask Staking service and operated as an unregistered broker via both MetaMask Staking and MetaMask Swaps.
According to the complaint, Consensys has facilitated the sale of unregistered securities on behalf of liquid staking providers Lido and Rocket Pool since at least January 2023.
Stance shift
Since Mark Uyeda was nominated as the acting chairman of the SEC and the regulator’s Crypto Task Force was created, high-profile enforcement actions have escalated.
On Feb. 21, the SEC reached an agreement with Coinbase to drop its enforcement case, which is also pending final approval from the regulator. The dismissal was followed by a similar decision regarding Robinhood’s crypto unit.
In the past week, the SEC also closed its enforcement actions against Uniswap Labs and Gemini, while Tron founder Justin Sun seeks to end the protocol’s litigation with the regulator.
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