The US Securities and Exchange Commission (SEC) has reached an agreement in principle to dismiss its securities enforcement case against Consensys, as announced in a statement on February 27. Once final approvals are obtained, the SEC will file a stipulation with the court to formally close the case. This resolution comes after Consensys decided to contest the allegations brought against them.
Joseph Lubin, the CEO of Consensys, expressed relief at the impending dismissal of the case, stating that it marks the end of a challenging dispute. He emphasized that their decision to challenge the SEC was a necessary step to support blockchain software developers and protect innovation within the crypto industry. Lubin stated, “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.”
Lubin also commended the SEC’s current leadership for adopting a more pro-innovation and pro-investor approach. He reiterated Consensys’ commitment to engaging in constructive dialogue with both public and private policymakers to ensure balanced regulation that promotes consumer protection and industry growth.
With the regulatory matter resolved, Consensys is now shifting its focus entirely towards development efforts. Lubin expressed optimism about the future of Ethereum and decentralized technologies, highlighting the acceleration of the transition towards a more decentralized financial system.
The SEC had 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. The complaint stated that Consensys facilitated the sale of unregistered securities on behalf of liquid staking providers Lido and Rocket Pool since at least January 2023.
The recent shift in the SEC’s stance on enforcement actions coincides with Mark Uyeda’s appointment as the acting chairman of the SEC and the establishment of the regulator’s Crypto Task Force. Several high-profile enforcement actions have been resolved, including agreements with Coinbase and Robinhood’s crypto unit. Additionally, enforcement actions against Uniswap Labs and Gemini have been closed, while Tron founder Justin Sun is seeking to settle the protocol’s litigation with the regulator.
In conclusion, Consensys looks forward to a renewed focus on development efforts following the resolution of the SEC’s enforcement case. The company remains committed to supporting innovation within the blockchain industry and ensuring a balanced regulatory environment that fosters growth and consumer protection.