The US Securities and Exchange Commission (SEC) has agreed in principle to dismiss its enforcement case against Consensys regarding MetaMask, marking a significant victory for the blockchain industry in its ongoing battle against regulatory scrutiny.

Consensys founder Joseph Lubin shared the news in a statement on X (formerly Twitter), expressing relief and optimism about the decision. “We were committed to fighting this suit until the bitter end but welcome this outcome,” he said. The dismissal is subject to final approval by the Commission, after which the SEC will file a stipulation with the court to officially close the case.

The case against Consensys was part of the SEC’s broader crackdown on crypto firms, focusing on whether MetaMask’s swaps and staking services violated securities laws. The decision to drop the lawsuit follows increasing industry pushback against what many see as regulatory overreach.

Lubin also noted that Consensys’ separate lawsuit against the SEC over Ethereum’s classification as a security played a role in shifting the agency’s stance. “That lawsuit actually caused the SEC to drop their Ethereum investigation,” he stated, hinting at a major regulatory retreat on ETH.

The move suggests that the SEC, under its current leadership, may be taking a more balanced approach to crypto enforcement. Lubin acknowledged this shift, saying, “We appreciate the SEC’s new leadership and the pro-innovation, pro-investor path they are taking.”

With the MetaMask case behind them, Consensys now aims to refocus on development. Lubin called 2025 the "best year yet" for Ethereum and Consensys, emphasizing that the paradigm shift toward a more decentralized world is accelerating.

While it’s too early to call this a complete shift in policy, it signals a potential thawing of tensions between regulators and blockchain innovators.