The mother or father firm of MetaMask, one of many world’s hottest crypto wallets, is urging the U.S. Securities and Trade Fee (SEC) to approve spot market Ethereum (ETH) exchange-traded funds (ETFs).
In a brand new letter to the SEC, Consensys asks the regulatory company 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, in accordance with the agency.
Consensys notes the SEC had beforehand asked for public commentary about the best way to handle the “distinctive issues” related to Ethereum with regards to fraud and manipulation.
In response, Consensys says that the SEC’s issues are “wholly with out benefit” and that Ethereum’s safety mannequin is healthier than Bitcoin’s.
“In truth, Ethereum’s PoS implementation meets and even exceeds the safety of Bitcoin’s Proof of Work (PoW).”
Consensys goes on to say that because the SEC greenlit spot market BTC ETFs in January, it wouldn’t make sense to reject Ethereum ETFs for safety functions.
“Ethereum’s PoS consensus mechanism, decentralized growth neighborhood and inherent community transparency set up a sturdy safety framework that considerably reduces the chance of fraud and manipulation as in contrast with Bitcoin…
There isn’t a justifiable cause to disclaim the itemizing and buying and selling of the iShares Ethereum Belief based mostly on concern over Ether’s susceptibility to fraud and manipulation.
We urge the Fee to acknowledge the superior safeguards inherent in Ethereum’s design, which not solely meet however exceed the exemplary safety and resilience safeguards underlying Bitcoin-based ETPs which were beforehand accepted by the Fee.”
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