The US SEC agency decided to terminate the enforcement action against popular Ethereum blockchain firm Consensys.
Summary
- The SEC body dropped its lawsuit against Consensys firm.
- Joseph Lubin shared his happiness and said his company is ready to contribute 100% strength in productivity.
- SEC body said meme tokens are not security tokens.
Consensys is a popular Ethereum blockchain firm, founded by Joseph Lubin in 2014. This company is mainly known for its highly decentralized crypto wallet product, called Metamask. Metamask is a web3 crypto wallet that allows crypto traders to transfer & trade cryptocurrencies in a fully decentralized environment. In 2024, the US Securities and Exchange Commission (SEC) filed a lawsuit against this firm. Through the lawsuit, the SEC agency alleged that Consensys acted as an unregistered broker and facilitated unregistered securities offerings.
On 27 Feb 2025, Consensys founder Joseph Lubin informed the crypto community that his company and the SEC body have agreed in principle that the securities enforcement case concerning MetaMask should be dismissed.
Lubin said that the leadership of Consensys was engaged to fight against the charges to get a better outcome, but in reality, no company wants to be the target of a regulatory body.
Consensys founder said that his company’s main priority is to stand as a respectful blockchain firm in the space & simultaneously stand up against regulatory overreach only.
Lubin thanked all of his legal representatives who helped the company defend against the charges and also praised the new leadership of the SEC body, which is following a pro-crypto approach to regulating the crypto space.
In the last week, the SEC dropped multiple lawsuits filed by the SEC body from 2023 to 2024 under the leadership of Gary Gensler.
First of all, SEC closed the Coinbase case, and, after that, similar decisions for the Gemini crypto exchange.
SEC’s Clear Rules for Meme Tokens
In the latest developments, the SEC body published fresh new statements regarding meme crypto tokens. As per the published information, all the meme crypto tokens that are inspired by internet memes, characters, or trends, typically lacking practical functionality, will be labelled as non-security tokens.
It means crypto projects linked to meme tokens are not required to register with the SEC body.
However, any unethical practices or misconduct by any person using the concept of meme tokens will be subject to the violation of federal securities laws. In that situation, the SEC body will be able to take enforcement action against that actor.
This is a very good move by the SEC body, as they’re now open to talk about the rules & laws regarding cryptocurrencies. However, the crypto sector is still operating under unclear rules & laws, but now crypto enthusiasts are optimistic about the SEC’s current ProCrypto leadership. Earlier in the past many crypto entrepreneurs slammed the SEC body for its bad crypto regulatory approach.
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