The U.S. Securities and Exchange Commission (SEC) has officially dropped its case against Consensys, confirming that the MetaMask wallet does not violate securities laws. While this marks the sixth crypto-related legal action the SEC has withdrawn in just a week, the agency has yet to address the most significant case in the industry—the ongoing lawsuit against Ripple (XRP).
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.…
— Joseph Lubin (@ethereumJoseph) February 27, 2025
Consensys’ CEO, Joseph Lubin, welcomed the SEC’s decision with optimism, highlighting what he sees as a shift toward a more innovation-friendly approach by the Commission. "I’m pleased to announce that Consensys and the SEC have agreed in principle that the securities enforcement case concerning MetaMask should be dismissed," Lubin stated.
MetaMask, the Ethereum-based wallet developed by Consensys, was under SEC scrutiny for allegedly operating in violation of securities regulations. The case was part of a broader crackdown on crypto companies, which also saw Coinbase and Gemini under investigation. However, in recent weeks, the SEC has begun scaling back its enforcement actions, seemingly adopting a more conciliatory stance.
While the crypto community welcomes this trend, one question remains unanswered: what happens next in the high-profile lawsuit against Ripple?
Crypto’s Biggest Unanswered Question: What About Ripple?
Despite dropping multiple cases, the SEC has remained silent on the ongoing legal battle with Ripple, which has been in litigation for over three years. The case is one of the most consequential in crypto history, as it directly challenges how the SEC classifies digital assets as securities.
my god pic.twitter.com/8sCrv95gAQ
— James Seyffart (@JSeyff) February 27, 2025
The Commission’s lack of transparency has sparked frustration among crypto enthusiasts, with many taking to social media to demand answers. Meanwhile, a recent closed-door SEC meeting has fueled speculation that the agency may be preparing to reach a resolution.
The SEC’s meeting agenda included discussions on “resolution of litigation claims and other matters relating to examinations and enforcement proceedings.” This has led analysts to believe that the Commission could be wrapping up remaining lawsuits from the Gensler era.
However, there is no concrete evidence yet that the SEC plans to drop or settle the Ripple case. Given the trend of recent enforcement rollbacks, the industry is watching closely for any movement. Many now believe that it’s only a matter of time before the SEC either settles or completely drops the lawsuit.
The SEC’s shifting stance on crypto enforcement suggests a possible new regulatory approach, especially under fresh leadership. While companies like Consensys and Coinbase have benefited from these changes, Ripple’s fate remains uncertain.
HODL Team
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