SEC drops lawsuit against MetaMask as Crypto stance shifts

Especially after the departure of Gary Gensler from the Securities and Exchange Commission of the United States and the change in the stance over digital assets has been seen in a most recent development, Consensys, the developer of MetaMask wallet, has noted in the blog post that the commission is dropping the lawsuit filed in July 2024.

Similar to other crypto lawsuits, the regulatory commission sued the company for breaching the securities laws of the United States.

Consensys is in talks with the SEC to drop the lawsuit

The blog post by Consensys says that it is discussed with the SEC to dismiss the securities enforcement lawsuit against the crypto wallets. Yet the final closing of the case is totally based on the stipulation that is yet to be filed by the exchange commission with the Court.

Consensys says in the post that no company wants to become the agency’s target. However, it is our duty to stand firm for the blockchain developers.

Joseph Lubin, the founder of Consensys, said, “ Devs both here at Consensys and across space are building a better world and deserve to have someone in their corner fighting for their rights.”

The lawsuit registered by the SEC in July 2024 alleges that MetaMask has been operating as an unregistered broking firm offering stake service to the platforms likewise Rocket Pool and Lido.

SEC’s new leadership favoring the crypto market? 

The Securities and Exchange Commission of the United States has yet to appoint a permanent chairman, and Mark T. Uyeda has been appointed as the commission’s acting chair.

In its entire history, the SEC has collected the highest penalties from crypto sectors under the chairship of Gary Gensler; however, in his last days, the former chair showed less interest in suing the companies.

Market experts argue that in the next few months, there will be higher chances of the digital assets market reaching heights never before, primarily due to the change in the presidency in the U.S. from Joe Biden to Donald Trump.

Soon after, Trump’s administration issued several letters and notices to the nation’s pre-existing finance sectors to review the nation’s rules, regulations, and policies hindering the growth of digital assets in the country.

The current acting chairman of the SEC, Mark T Uyeda, has delivered his services being the commissioner of the SEC. He is known for his pro-crypto stance and mentality, and he also said that he is the only one who can open new paths for cryptocurrencies under Trump’s presidency.

The crypto market is bleeding as never before; why? 

Back-to-back declines have pulled the crypto market pace below its 20, 50, 100, and 200-day exponential moving average, and when writing, the market cap was $2.64 trillion with a massive loss of 7.46,% and the volume was $158.34 billion.

Analysts believe that Trump’s rigorous traffic plan and other worldwide microeconomic uncertainties fuel the ongoing bearish momentum in the market.

In the past 24 hours, Bitcoin lost more than 7.50% and was traded at $79,544. The market capitalization was $1.52 trillion, falling 7.90%. The constant selling pressure has been troubling the market; it is worth noting that over the week, the market lost what it gained after Donald Trump’s victory.