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, based on the agency.
Consensys notes the SEC had beforehand requested for public commentary about methods to deal with the “distinctive considerations” related to Ethereum in relation to fraud and manipulation.
In response, Consensys says that the SEC’s considerations are “wholly with out benefit” and that Ethereum’s safety mannequin is best than Bitcoin’s.
“In actual fact, 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 improvement neighborhood and inherent community transparency set up a strong safety framework that considerably reduces the danger of fraud and manipulation as in contrast with Bitcoin…
There isn’t any justifiable motive 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 have been beforehand accepted by the Fee.”
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