MetaMask Parent Company Consensys Urges SEC To Consider Spot Ethereum ETF Approval

The parent company of MetaMask, one of the worlds most popular crypto wallets, is urging the U.S. Securities and Exchange Commission (SEC) to approve spot market Ethereum (ETH) exchange-traded funds (ETFs).

In a new letter to the SEC, Consensys asks the regulatory agency to approve spot market ETH ETFs as Ethereums proof-of-stake consensus mechanism, which it transitioned to in 2022, is safer than Bitcoins (BTC) proof-of-work system, according to the firm.

Consensys notes the SEC had previously asked for public commentary about how to address the unique concerns associated with Ethereum when it comes to fraud and manipulation.

In response, Consensys says that the SEC’s concerns are “wholly without merit” and that Ethereums security model is better than Bitcoin’s.

“In fact, Ethereums PoS implementation meets and even exceeds the security of Bitcoins Proof of Work (PoW).

Consensys goes on to say that since the SEC greenlit spot market BTC ETFs in January, it wouldnt make sense to reject Ethereum ETFs for security purposes.

Ethereum’s PoS consensus mechanism, decentralized development community and inherent network transparency establish a robust security framework that significantly reduces the risk of fraud and manipulation as compared with Bitcoin…

There is no justifiable reason to deny the listing and trading of the iShares Ethereum Trust based on concern over Ethers susceptibility to fraud and manipulation.

We urge the Commission to recognize the advanced safeguards inherent in Ethereums design, which not only meet but exceed the exemplary security and resilience safeguards underlying Bitcoin-based ETPs that have been previously approved by the Commission.

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