The parent company of MetaMask, one of the world’s most popular crypto wallets, is urging the U.S. Securities and Exchange Commission (SEC) to approve spot market Ethereum (ETH) exchange-traded funds (ETFs).
In a new letter to the SEC, Consensys asks the regulatory agency to approve spot market ETH ETFs as Ethereum’s proof-of-stake consensus mechanism, which it transitioned to in 2022, is safer than Bitcoin’s (BTC) proof-of-work system, according to the firm.
Consensys notes the SEC had previously asked for public commentary about how to address the “unique concerns” associated with Ethereum when it comes to fraud and manipulation.
In response, Consensys says that the SEC’s concerns are “wholly without merit” and that Ethereum’s security model is better than Bitcoin’s.
“In fact, Ethereum’s PoS implementation meets and even exceeds the security of Bitcoin’s Proof of Work (PoW).”
Consensys goes on to say that since the SEC greenlit spot market BTC ETFs in January, it wouldn’t make sense to reject Ethereum ETFs for security purposes.
“Ethereum’s PoS consensus mechanism, decentralized development community and inherent network transparency establish a robust security framework that significantly reduces the risk of fraud and manipulation as compared with Bitcoin…
There is no justifiable reason to deny the listing and trading of the iShares Ethereum Trust based on concern over Ether’s susceptibility to fraud and manipulation.
We urge the Commission to recognize the advanced safeguards inherent in Ethereum’s design, which not only meet but exceed the exemplary security and resilience safeguards underlying Bitcoin-based ETPs that have been previously approved by the Commission.”
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