SEC Abandons Case Against ConsenSys Over MetaMask

The US Securities and Exchange Commission (SEC) has dropped its enforcement investigation into ConsenSys over MetaMask Swaps and MetaMask Staking, closing the case with no fine or admission of wrongdoing. The move directly challenges the regulatory theory that non-custodial wallet interfaces constitute unregistered brokerage operations.

The SEC filed its original complaint in June 2024, alleging that ConsenSys had brokered transactions in crypto asset securities since at least October 2020 and collected transaction-based compensation through MetaMask's integrated services. The agency also targeted MetaMask's routing integrations with Lido and Rocket Pool as unregistered securities offerings.

ConsenSys had pre-empted the suit with its own action against the SEC in April 2024, challenging the agency's authority over Ethereum-related software and its attempted classification of Ethereum as a security. ConsenSys founder Joe Lubin announced the resolution, saying the company had agreed in principle that the securities enforcement case concerning MetaMask should be dismissed.