Today in crypto, the US Securities and Exchange Commission has dropped lawsuits against Coinbase, Consensys and Gemini — marking a series of legal reversals in its crackdown on the crypto industry. Meanwhile, California Democratic Party Representative Sam Liccardo is reportedly preparing to introduce the MEME Act in the US House of Representatives, which would ban the issuance of memecoins, such as TRUMP, by public officials.
SEC agrees to drop Consensys lawsuit
The US Securities and Exchange Commission has agreed in principle to drop its lawsuit against crypto firm Consensys — the developer of MetaMask. The suit claimed that aspects of MetaMask violated securities laws.
According to Ethereum co-founder and Consensys founder Joseph Lubin, the SEC has agreed to file a motion effectively ending the case, and the conclusion of the litigation is still subject to final approval from the commission. Lubin added:
“Now we can get 100% back to building. 2025 is going to be the best year yet for Ethereum and Consensys. The paradigm shift to a much more decentralized world is accelerating.”
Consensys attorney Bill Hughes told Cointelegraph that the agreement to drop litigation was fairly straightforward and that the SEC would not impose any fines or conditions on Consensys as part of the lawsuit dismissal.
“The litigation team on their side understood that the SEC was going to be moving in a new direction,” Hughes said and attributed the federal agency’s regulatory pivot to a change in leadership and the pro-crypto policies of the Trump administration.
“There was definitely a tenor change in the conversations post-election,” between Consensys and the SEC, the attorney added.
Source: Joseph Lubin
Consensys was sued by the SEC in June 2024. The agency alleged that the company made more than $250 million in fees by offering staking services and digital asset swaps through MetaMask.
Related: SEC dismisses lawsuit against Coinbase
House Democrats propose bill to ban presidential memecoins: Report
The US Congress is reportedly set to consider legislation that would ban the issuance of memecoins like President Donald Trump’s Official Trump (TRUMP) token.
House Democrats are preparing to introduce the Modern Emoluments and Malfeasance Enforcement (MEME) Act, which would prohibit public officials from profiting from digital assets, California Representative Sam Liccardo told ABC News on Feb. 27.
The draft legislation would prohibit a broad range of public officials and related persons from issuing, sponsoring or endorsing any security, commodity or digital asset.
“Let’s make corruption criminal again,” Liccardo said, adding that US public offices belong to the public and that officials should not be allowed to leverage their political authority for financial gain.
The MEME Act, which is expected to be introduced on Feb. 27, will concern the president, vice president, Congress members, senior executive branch officials and their spouses and dependent children.
SEC closed its investigation into Gemini with no action, says Winklevoss
The United States Securities and Exchange Commission has closed its investigation into crypto exchange Gemini, adding to a growing list of firms that have escaped the regulator’s scrutiny for now.
In a Feb. 26 notice shared by Gemini co-founder and president Cameron Winklevoss, the SEC said it had concluded its investigation and “based on the information we have as of this date,” the regulator will not recommend an enforcement action.
The SEC has opted not to proceed with an enforcement action against crypto exchange Gemini. Source: Cameron Winklevoss
The SEC charged crypto lending firm Genesis Global Capital and crypto exchange Gemini with offering unregistered securities through Gemini’s “Earn” program on Jan. 12, 2023.
However, the agency added the notice isn’t an exoneration and that it must not be construed as an indication that no action will be taken at a later date as a result of the SEC’s investigation.
