SEC and MetaMask creator Consensys agree to end lawsuit

by

SEC vs. MetaMask: The Epic Showdown Ends in a Whimper! 🎉

Ah, the grand theater of justice! The U.S. Securities and Exchange Commission, that ever-watchful guardian of the financial realm, has decided to drop its case against the valiant Ethereum software developer, Consensys. A victory, my friends, for the digital asset industry! 🎭

In a plot twist worthy of a soap opera, the creators of MetaMask, those brave souls at Consensys, have emerged from the shadows of a federal investigation that was launched by the previous SEC leadership. It’s like a bad dream that finally fades away, as of February 27. Who knew the SEC could be so forgiving? 😏

Joseph Lubin, the mastermind behind Consensys and a co-founder of Ethereum, announced that both parties have reached an agreement to end this tiresome probe. It’s like a couple deciding to stop arguing over who left the cap off the toothpaste. Peace at last! ✌️

Consensys found itself in the crosshairs of the SEC, which had alleged that Lubin’s blockchain wizardry, through the MetaMask non-custodial wallet, was operating as an unregistered securities broker. Oh, the horror! They even claimed that consumer protection measures were as absent as a good plot twist in a predictable movie. 🎬

The case was built on the shaky premise that most cryptocurrencies are securities and must be registered with the SEC. This was a position championed by the former SEC Chair, Gary Gensler, who seemed to have a vendetta against anything that sparkled in the crypto world. 💎

But wait! The lawsuit against Consensys, along with a counter-suit from Lubin’s firm, unearthed a year-long investigation into Ethereum’s blockchain. It was like digging for treasure and finding only old socks. Thankfully, the probe was dropped after MetaMask’s creator decided to challenge the agency’s claims. Talk about a plot twist! 🧦

“We were committed to fighting this suit until the bitter end but welcome this outcome,” Lubin proclaimed in an X post, celebrating his company’s triumph. It’s like winning a game of chess against a toddler—satisfying, yet slightly embarrassing for the opponent. 🏆

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

In a delightful turn of events, several crypto service providers have received similar good news from the SEC this year, following the arrival of Donald Trump and the ascension of acting Chair Mark Uyeda, who seems to have a softer touch than his predecessor. It’s like switching from a drill sergeant to a friendly puppy! 🐶

As of now, the SEC has dropped its cases against Coinbase, OpenSea, Robinhood, Uniswap, and Gemini. The agency’s Crypto Task Force is even considering closing lawsuits against Binance and the ever-controversial Justin Sun. It’s a crypto renaissance, folks! 🎊

Read More

2025-02-27 20:35