SEC will drop case against MetaMask, says Consensys founder Lubin

Consensys and the U.S. Securities and Exchange Commission have agreed 'in principle' to end the case against MetaMask, the company's founder Joseph Lubin said Thursday.

"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," Lubin posted to X. "We were committed to fighting this suit until the bitter end but welcome this outcome."

MetaMask is one of the most popular crypto wallets in the world. Consensys is the web3 developer behind the MetaMask software.

Last June, the SEC sued Consensys, alleging the blockchain company had violated the law through its MetaMask staking service. The SEC filed the complaint in the U.S. District Court in the Eastern District of New York.

Consensys and the SEC finding common ground echoes the wider sea change felt throughout the U.S. government since Donald Trump became president and promised to be more amenable to the digital assets industry. Last week, the SEC also agreed in principle to dismiss its long-standing case against Coinbase.

In April 2024, Consensys went on the offensive, suing the SEC for categorizing Ethereum as a security. At the time, Consensys said the SEC had "trained its sights" on the firm's MetaMask software. In September, a judge dismissed Consensys' case.