Consensys Urges SEC Approval for Ethereum ETFs

Consensys is advocating for the approval of Ethereum (ETH) exchange-traded funds (ETFs) based on spot market prices by the U.S. Securities and Exchange Commission (SEC).

The parent company of MetaMask, in a recent letter to the SEC, highlights Ethereum’s transition to a proof-of-stake (PoS) consensus mechanism in 2022, which it argues is more secure than Bitcoin’s proof-of-work (PoW) system.

The company asserts that the SEC’s previous concerns about Ethereum’s susceptibility to fraud and manipulation are unfounded.

Consensys contends that Ethereum’s PoS implementation not only matches but surpasses the security level of Bitcoin’s PoW.

With the SEC having approved spot market Bitcoin ETFs in January, Consensys argues that rejecting Ethereum ETFs solely based on security concerns would be unjustifiable.

The letter emphasizes Ethereum’s decentralized development community, transparent network, and robust security framework as factors mitigating the risk of fraud and manipulation.

Consensys urges the SEC to acknowledge Ethereum’s advanced safeguards and approve the listing and trading of Ethereum-based ETFs without hesitation.

Author

Alexander Stefanov

Reporter at CoinsPress

Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.