JUST IN: SEC Drops Investigation into Consensys, MetaMask’s Parent Company

As of today, the U.S. Securities and Exchange Commission (SEC) has decided to end its investigation into Consensys, the company behind the widely used cryptocurrency wallet MetaMask. The two sides have reportedly come to a preliminary agreement to dismiss the SEC’s case, which claimed Consensys was breaking securities laws. The deal still needs final approval from the SEC, but it’s a big step toward closing this chapter.

The trouble started under the SEC’s previous leadership, which accused Consensys of acting as an unregistered broker through MetaMask’s staking and swapping features. Essentially, the SEC argued that Consensys was offering financial services without following the proper rules. But things have shifted with new leadership at the SEC, which seems to be taking a friendlier approach to the crypto world.

Joseph Lubin, who co-founded both Ethereum and Consensys, said he’s relieved the case is winding down. While the company was prepared to fight the allegations, Lubin is glad to see it resolved. This isn’t the first time recently that the SEC has backed off from a crypto company—it’s also dropped investigations into Uniswap and Coinbase, hinting that regulators might be easing up on the industry.

For now, Consensys and MetaMask users can breathe a little easier, as the company avoids a drawn-out legal battle and gets back to business as usual.

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