Crypto firm Consensys says US regulator has closed inquiry into Ethereum 2.0

(Reuters) – The U.S. Securities and Exchange Commission has closed its investigation into blockchain protocol Ethereum 2.0, cryptocurrency firm Consensys said in a post on social media platform X late on Tuesday.

The firm filed a lawsuit in April seeking injunctive relief against the US SEC over regulation of the Ethereum blockchain.

The SEC’s decision to close the investigation is a “major victory” for Ethereum, Consensys founder Joseph Lubin said on Wednesday.

“While we welcome this development, it is not enough. We must remain vigilant and continue to advocate for open and fair regulations that will enable innovation to thrive,” Lubin, one of the founders of the cryptocurrency Ethereum, said in a post on X. said.

Consensys said it will continue its lawsuit following a court ruling that the SEC does not have the legal authority to regulate user-controlled software interfaces built on Ethereum or the Ethereum blockchain.

The SEC was not immediately available for comment due to a federal holiday.

Last month, the SEC approved applications from Nasdaq, CBOE and NYSE to list spot ether ETFs. This was a surprise win for the cryptocurrency industry, which had been expecting the SEC to reject the applications.

(Reporting by Bhanvi Satija in Bengaluru; Editing by Cynthia Osterman)