The U.S. Securities and Exchange Commission (SEC) has taken another surprising step by dropping its lawsuit against Ethereum software developer Consensys, the company behind Metamask wallet.
The agency had initially alleged that Metamask, a widely used crypto wallet, was functioning as an unregistered broker. In a dramatic turn, the SEC is backing away from its claims.
Consensys CEO Joseph Lubin confirmed that the SEC would soon file a stipulation in court to close the case officially. Lubin welcomed this shift, crediting the SEC’s new leadership for a more innovation-friendly approach.
Also Read: Here is Why XRP and the Global Crypto Market is Crashing
Is the SEC Backing Down from Crypto Battles?
The SEC’s decision to drop the Consensys lawsuit comes amid a wave of reversals in crypto enforcement. The agency dismissed its case against Coinbase, the largest U.S.-based crypto exchange, just days ago.
Moreover, investigations into Robinhood and decentralized finance (DeFi) giant Uniswap Labs were also scrapped. These actions suggest a broader regulatory pullback, raising speculation about whether the SEC is changing its stance on digital assets.
Former SEC Chair Gary Gensler was widely seen as a hardliner against the crypto industry. His departure has triggered a notable shift, with Acting Chair Mark Uyeda overseeing a wave of enforcement rollbacks.
The pending nomination of Paul Atkins, a former SEC commissioner known for his crypto-friendly views, further fuels industry optimism.
What This Means for Ethereum and the Future of Crypto
With the Consensys lawsuit dismissed, Ethereum supporters see this as a win for decentralization. Lubin has already predicted that 2025 will be a defining year for Ethereum, reinforcing the belief that the tide will favor blockchain technology.
However, uncertainty still looms as the SEC has yet to withdraw its appeal in the Ripple case, a lawsuit the crypto community has closely watched. Some analysts believe this reversal is inevitable, given the agency’s recent trend of abandoning legal battles.
Attorney Jeremy Hogan weighed in on the matter, stating that Ripple remains a more complicated case due to the existing judgment. He noted that the Tron case, which was recently paused by the SEC, had not advanced as far in the legal process.
Hogan emphasized, “That’s right – first in, last out,” suggesting that Ripple’s legal battle may take longer to conclude.
The crypto industry is now waiting for the SEC’s next move, wondering whether the regulatory retreat will continue or if this is just a temporary shift. Crypto enthusiasts remain cautiously optimistic as they navigate the evolving regulatory landscape.
Also Read: Here are the Three Most Likely Ways the Ripple vs SEC Lawsuit Will End
