The parent company of MetaMask, one of the world’s most popular crypto wallets, is pushing the US Securities and Exchange Commission (SEC) to approve Ethereum (ETH) exchange-traded funds (ETFs) in the spot market.
In a new letter to the SEC, Consensys asks the regulator to approve ETH ETFs in the spot market because Ethereum’s proof-of-stake consensus mechanism, which it switched to in 2022, is more secure than the proof-of-stake consensus mechanism work system of Bitcoin (BTC). according to the company.
Consensys notes that the SEC previously requested public comment on how to address the “unique concerns” associated with Ethereum when it comes to fraud and manipulation.
In response, Consensys says the SEC’s concerns are “completely unfounded” and that Ethereum’s security model is better than Bitcoin’s.
“In fact, Ethereum’s PoS implementation meets and exceeds Bitcoin’s Proof of Work (PoW) security.”
Consensys further says that since the SEC gave the green light to spot market BTC ETFs in January, it would not make sense to reject Ethereum ETFs on security grounds.
“Ethereum’s PoS consensus mechanism, decentralized development community, and inherent network transparency provide a robust security framework that significantly reduces the risk of fraud and tampering compared to Bitcoin…
There is no justifiable reason to deny the listing and trading of the iShares Ethereum Trust based on concerns about 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 the exemplary security and resilience safeguards underlying Bitcoin-based ETPs previously approved by the Commission , but even surpass them.”
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