The U.S. Securities and Exchange Commission (SEC) has officially ended its legal battle with Ethereum software firm Consensys, closing a case that had been ongoing for more than a year. This decision marks a significant shift in the regulatory landscape for the crypto industry.
SEC & Consensys Case Over
Consensys had been under investigation by the SEC over allegations related to its staking services and claims that it was operating as an unregistered broker in the United States. The company was also scrutinized for not implementing what regulators deemed adequate consumer protection measures.
The SEC, under former Chair Gary Gensler, had pursued enforcement actions based on the argument that all cryptocurrencies, with the exception of Bitcoin, should be classified as securities. This position led to legal action against multiple firms, including Coinbase, with the agency identifying several tokens—such as Solana (SOL), Cardano (ADA), and Polygon (POL)—as unregistered securities.
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
However, the agency’s stance has now changed. Consensys founder and Ethereum co-creator Joe Lubin confirmed that the SEC had agreed to conclude its investigation. “No company wants to be the target of agency enforcement,” Lubin wrote on X. “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.”
Regulatory Shifts & SEC’s Changing Approach
The decision to drop the case follows broader changes in the SEC’s regulatory posture towards cryptocurrency. Earlier this year, Fox Business journalist Eleanor Terrett suggested that the agency was reconsidering its approach, particularly regarding staking services. The SEC had engaged in discussions with representatives from Jito Labs and Multicoin Capital, who highlighted the importance of staking in securing Proof-of-Stake (PoS) networks and generating returns for investors.
Additionally, a leadership transition at the SEC has played a role in the evolving regulatory stance. Following the resignation of Gary Gensler on January 20, Mark Uyeda stepped in as interim Chair. The shift in leadership, combined with President Donald Trump’s pro-crypto stance, has contributed to a more favorable environment for the industry.
Consensys is not the only company to see a legal victory. In recent weeks, the SEC has dropped cases against major industry players, including Coinbase, Robinhood, and Uniswap.
On February 21, 2025, the SEC and Coinbase reached an agreement to dismiss the lawsuit against the exchange. Coinbase CEO Brian Armstrong called it a “really good day” for the company and its users. Similarly, Robinhood, which had received a Wells Notice, confirmed that the SEC had decided to conclude its investigation without pursuing enforcement. Uniswap also secured a case dismissal from the agency. These recent developments reflect a significant regulatory shift, signaling a potential easing of enforcement actions against crypto firms in the U.S.
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