SEC Drops Lawsuit Against Consensys Amid Regulatory Shift

The U.S. Securities and Exchange Commission (SEC) has agreed to drop its lawsuit against Consensys, a blockchain software company, initially filed in June 2024. The lawsuit accused Consensys of violating securities laws through its MetaMask wallet, allegedly generating over $250 million in fees. The SEC's decision awaits commissioner approval. Consensys attorney Bill Hughes attributed the SEC's reversal to changes in leadership following the U.S. presidential election and the Trump administration's pro-crypto stance. This dismissal follows similar actions by the SEC, including closing investigations into Uniswap, Robinhood Crypto, and Gemini. Consensys had previously sued the SEC in April 2024 over attempts to classify Ether as a security. Consensys CEO Joseph Lubin welcomed the decision, highlighting the importance of 2025 for Ethereum and Consensys. Since Gary Gensler's departure, the SEC has shifted its regulatory stance under Acting Chair Mark Uyeda, who launched a Crypto Task Force led by Commissioner Hester Peirce.