Consensys, the company that created the MetaMask crypto wallet, has reached a deal with the U.S. Securities and Exchange Commission (SEC) to drop its lawsuit.
The SEC had previously filed an action against Consensys, accusing the company of breaking securities laws. However, both sides have now agreed to settle the case and end the lawsuit.
Consensys’ founder is Joseph Lubin, who released a statement to the public declaring that, “We were set on finishing with this lawsuit until the bitter end, but we had agreed to terms with both sides and currently welcome the proposed outcome.”
In further detail, Bauer holds that the case will be officially closed once the SEC Commission gives the case clearance.
The lawsuit started back in June of last year, with the SEC alleging that MetaMask was acting as an unregistered broker by offering stake services to platforms such as Lido and Rocket Pool. The regulator states that these stake programs involved securities, which meant Consensys needed to register with the SEC.
But before this, Consensys had already filed a suit with the SEC in April, asking the court to make it clear whether Ethereum and MetaMask services should be regulated.
Interestingly, less than ten days prior to the SEC filing this suit, it had already dropped an investigation into Ethereum 2.0 without taking any form of action.
Lubin spoke against standing up against unfair regulation, saying, “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.
He believes that this victory will be a part of a larger effort to fight for a fair set of rules for the crypto industry. He also thanks his legal team and the Consensys community for their support.
Meanwhile, the SEC has been backing off from several crypto cases lately. Just last week, it had dropped its lawsuit against Coinbase and closed investigations into OpenSea , Uniswap Labs, and Robinhood Crypto .
On Monday, the SEC also closed its investigation into Gemini without taking any legal action. The agency is also set to have a discussion with Justin Sun, the founder of TRON, about a possible settlement over allegations of unregistered securities sales and market manipulation.
