28-2-2025 – Consensys, the architects behind the MetaMask crypto wallet, has successfully negotiated an agreement with American regulators to terminate ongoing legal proceedings.
The resolution marks a pivotal moment in the complex relationship between blockchain innovators and regulatory bodies, as Joseph Lubin’s blockchain technology firm emerges from a contentious battle with the Securities and Exchange Commission (SEC).
“Whilst we were prepared for a protracted legal struggle, the mutually agreeable terms have led to a welcome conclusion,” remarked Lubin, the firm’s founder, in an official statement. The settlement awaits final approval from the SEC Commission, as confirmed by legal representatives.
The regulatory spotlight had fallen on Consensys last June, when the SEC contended that MetaMask had operated as an unregistered broker through its staking services, particularly in connection with platforms like Lido and Rocket Pool. The heart of the matter centred on whether these staking programmes constituted securities under American law.
This resolution arrives against an intriguing backdrop: Consensys had previously sought clarity through legal channels in April, petitioning the courts to define the regulatory status of Ethereum and MetaMask services. Rather notably, the SEC had already concluded an investigation into Ethereum 2.0 without pursuing enforcement action mere days before initiating proceedings against Consensys.
Striking a defiant yet measured tone, Lubin emphasised the broader implications of their legal stand: “Whilst no enterprise welcomes regulatory scrutiny, we embraced our responsibility to champion the rights of blockchain developers at this crucial juncture.”
The settlement appears to be part of a wider shift in the SEC’s approach to cryptocurrency enforcement. Recent weeks have witnessed the regulator withdrawing from several high-profile cases, including actions against Coinbase, whilst closing investigations into prominent platforms such as OpenSea, Uniswap Labs, and Robinhood Crypto.
Most recently, the regulatory body concluded its probe into Gemini without pursuing legal action, whilst simultaneously engaging in settlement discussions with TRON founder Justin Sun regarding allegations of unregistered securities trading and market manipulation.
