Consensys agrees with SEC to dismiss enforcement action against Consensys
The US Securities and Exchange Commission, or SEC, has agreed in principal to dismiss its securities case against Consensys. This was revealed by a February 27th report. statement.
The SEC will then file a stipulation to close the case with the court once final approvals have been obtained. The resolution follows Consensys’ commitment to contest the allegations.
Consensys CEO Joseph Lubin claimed that the dismissal is final, even though it still needs to be approved by the government. He said that the decision to sue the agency was part of a larger effort to support developers of blockchain software and to protect innovation in the crypto industry.
Lubin says:
“No company wants to be the target of agency enforcement, but at the same time, it was our duty and honor to stand up for blockchain software developers in the hour it was most needed, as I’m sure our industry peers who also stood up against regulatory overreach would tell you.”
Development efforts
Consensys’ CEO expressed appreciation of the SEC’s current leadership’s change in approach. This, he said, was more pro-innovation.
He also reaffirmed that the firm is committed to a constructive dialog with public and privately-held policymakers, to ensure a balance of regulation to support consumer protection and industrial growth.
Consensys intends to concentrate solely on development after the regulatory matter is concluded. Lubin said that Consensys is optimistic about Ethereum’s future and decentralized technologies. He also highlighted the rapid shift towards a decentralized financial system.
The SEC Consensys filed charges on June 282024, claiming that the company engaged the unregistered sale and offer of securities using its MetaMask Staking services and operated as a broker without registration via MetaMask Staking, MetaMask Swaps, and MetaMask Swaps.
Consensys, according to the complaint has been facilitating the sale unregistered securities for liquid staking provider Lido since at least January 20, 2023.
Stance shift
Mark Uyeda, Nominated as acting chairman Crypto Task Force, a joint effort of the SEC regulators CreatedEnforcement actions that are high-profile have intensified.
The SEC held its annual meeting on February 21. Reaching an agreement Coinbase has agreed to drop its enforcement action, which is still awaiting final approval by the regulator. This was followed up by a similar decision Robinhood Crypto Unit:
Justin Sun, Tron’s founder, also announced that the SEC has closed all enforcement actions against Uniswap Labs, Gemini and Tron in the last week. Ending the war on terror The litigation between the protocol and the regulator.
