Here’s Possible Reasons Why US SEC May Drop Consensys Lawsuit Next

There is speculation that the United States Securities and Exchange Commission (SEC) may likely dismiss its lawsuit against Consensys.

This notion draws from the Commission’s recent tilt towards cryptocurrency staking.

SEC is Very Interested in Staking

Fox Business News journalist Eleanor Terrett took X to share her thoughts on Consensys and the SEC’s case.

She pointed out the SEC’s new stance towards staking in a February 20 post that she made. The agency claimed it is “very, very interested” in staking.

The SEC even went as far as requesting a memo that details the different types of staking and their benefits.

Recall that the same Commission filed a lawsuit against Consensys in June 2024 over its Metamask staking services.

This is in addition to allegations that the firm was operating as an unregistered broker in the US.

Therefore, the SEC’s recent statement about staking is a notable pivot for the agency, which has consistently refused to approve staking for crypto investments.

On this premise, Terrett thinks it is only logical for the SEC to reconsider its lawsuit against the private blockchain software technology company.

Suits Against Coinbase and Robinhood Dropped

In June 2023, the SEC also accused Coinbase of operating as an unregistered broker, violating Federal Securities laws.

About 13 tokens, including Solana (SOL), Cardano (ADA), and Polygon (POL), were the target as the agency claimed they fell under its jurisdiction.

This was after leading cryptocurrency exchange Binance got hit with the same charges.

However, the securities regulator has hinted at plans to drop the case with Coinbase a few days ago.

After receiving a Wells Notice from the agency months ago, financial service provider Robinhood also bagged the same victory recently.

The SEC has now sent a letter saying that the commission has concluded its investigation and has no plans to follow up with enforcement action.

This came after about a month ago when the SEC asked Robinhood to pay $45 million in penalties for multiple securities law violations between 2018 and 2024.

These changes in stance are a result of the shift in leadership from the president of the US to the acting SEC Chair.

Donald Trump and Mark Uyeda’s crypto-friendly nature is reflected in the policies now shaping the broader digital asset sector.

Will the SEC approve staking on Crypto ETF products?

It is not yet sure if the Commission will consider the Consensys case and let go of its almost-one-year lawsuit.

Should this commission drop this lawsuit, crypto ETFs may be the next to partake in the benevolence of the SEC.

When Fidelity revised its spot Ethereum ETF filing in 2024, it included staking.

It has become fundamental to Ethereum since the platform switched to a Proof of Stake (PoS) validation method.

More asset managers have been considering the service. Consequently, representatives from Jito Labs and Multicoin Capital sat with the SEC to discuss the role of staking in PoS blockchains.

Their emphasis is on its impact on investor returns and network security.

Regarding staking practices in ETPs, the agency is concerned about delayed redemptions, tax uncertainties, and noncompliance with securities law.

The meeting with Jito Labs and Multicoin Capital representatives might cause the SEC to change its mind.

Eventually, crypto ETFs may get their request to offer staking services.