SEC Dismisses MetaMask Case, Ethereum Co-Founder Welcomes New Move
SEC Continues Trend of Dismissing Crypto Lawsuits
The US Securities and Exchange Commission (SEC) is making a change in its approach to the blockchain industry as it continues to drop a series of cryptocurrency-related lawsuits. According to recent reports, the SEC is reportedly preparing documents to drop its lawsuit against Consensys, the company behind the world's largest decentralized (DeFi) wallet platform MetaMask.
MetaMask was initially targeted by SEC Chairman Gary Gensler for allegedly operating as an unregistered broker. However, the SEC's dismissal of the case could signal a positive change in the regulator's approach to the cryptocurrency industry.
Ethereum and MetaMask Heading for Best Year Ever
After the news broke, Joseph Lubin, CEO of Consensys and co-founder of Ethereum (ETH), expressed relief at the outcome. He asserted that the company was ready to fight to the end but welcomed the SEC's decision.
Lubin stressed that the event will allow Ethereum and MetaMask to continue focusing on development, with the expectation that 2025 will be the best year for the two crypto giants.
The SEC's decision in the MetaMask case is the sixth case to be dismissed in recent weeks. The agency has also reached settlements with TRON and Gemini, further reinforcing the trend of easing regulations for the blockchain industry. This could signal a major shift in the SEC's approach to cryptocurrency regulation globally.
Ethereum (ETH) Price Reacts Positively
In light of the positive developments from a regulatory perspective, Ethereum – the largest altcoin in the market – has responded positively, maintaining support around $2,300.
At the time of writing, ETH is trading at $2,329, fluctuating in a narrow range between $2,265 and $2,376 over the past 24 hours. The technical chart on the 1-hour time frame shows that the Bollinger Bands are narrowing, signaling the possibility of ETH continuing to accumulate before a new breakout.
A Major Shift in Crypto Regulation
The SEC’s move is said to have begun in mid-2024, when the agency decided to abandon its investigation into Ethereum. According to the legal team representing MetaMask & Consensys, SEC Chairman Gary Gensler made a statement in 2018 that Ether (ETH) is not a security.
With the new term, the SEC seems to be adjusting its approach, allowing the blockchain industry to grow instead of continuing to pursue lengthy lawsuits. Finding a compromise with major organizations in the cryptocurrency industry could be an important step toward building a more legitimate and sustainable decentralized financial ecosystem in the future.