Consensys urges SEC to ‘recognize’ spot Ethereum ETFs

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Consensys, the software program firm behind MetaMask digital pockets, is asking on U.S. regulators to acknowledge the superior safeguards inherent within the design of Ethereum (ETH).

The Fort Price, Texas-based agency penned a letter in response to the U.S. Securities and Trade Fee’s (SEC) current request for public feedback on Nasdaq’s pending application for a rule change to allow the buying and selling of iShares Ethereum Belief.

Within the letter, Consensys defined why regulatory issues about Ethereum’s susceptibility to fraud and manipulation are unfounded. 

The corporate additionally argues that a number of key features of Ethereum’s proof-of-stake (PoS) implementation make it extra proof against tampering than the Bitcoin (BTC) proof-of-work (PoW) consensus mannequin, which underlies Bitcoin-based exchange-traded merchandise beforehand approved by the SEC.

The regulatory physique’s request, issued on March 8, sought suggestions on varied features of Ethereum, together with its proof-of-stake consensus mechanism and the focus of management or affect by just a few people or entities. It particularly inquired whether or not these options elevate distinctive issues about Ethereum’s susceptibility to fraud and manipulation.

One of many highlights of Consensys’ remark letter is Ethereum’s sooner block finality below PoS, which ensures provable transaction finality inside a shorter timeframe than PoW. Moreover, Ethereum’s PoS depends on a distributed and randomized validation course of that forestalls giant stakeholder management, thus mitigating the chance of manipulation.

The blockchain know-how firm additionally emphasised Ethereum’s slashing penalties for validators who violate protocol guidelines and the community’s Byzantine fault tolerance, making it considerably extra expensive to assault Ethereum than Bitcoin.

Furthermore, it highlighted Ethereum’s environmental advantages, noting that the community’s consensus mechanism is extra environmentally pleasant than Bitcoin’s.

Within the letter, Consensys urged the SEC to approve spot Ethereum ETFs. The corporate emphasised its dedication to onboarding the following billion customers to web3, stating that their remark letter is a step in the direction of driving progress and offering related and helpful data to the general public.

The corporate expressed its readiness for ongoing, constructive dialogue with the SEC and its employees on the problem.

Apart from Consensys, different gamers within the crypto house have additionally had their say concerning an Ethereum ETF. In early March, stories surfaced that Coinbase had met with the SEC to discuss a proposal by Grayscale for an ETH exchange-traded fund.

Per the stories, Coinbase made a presentation to the regulatory physique the place it dedicated to setting up a surveillance sharing settlement with the Chicago Mercantile Trade (CME) to examine for any fraud or manipulation of the Ethereum ETF market if permitted.

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