Consensys Pushes SEC for Ethereum ETF Approval Despite Security Claims

The parent business of one of the top cryptocurrency wallets, MetaMask, Consensys, is urging the Securities and Exchange Commission (SEC) of the United States to approve Ethereum (ETH) exchange-traded funds (ETFs) that are based on spot market trading.

Consensys stressed the security of Ethereum’s proof-of-stake (PoS) consensus process over Bitcoin’s proof-of-work (PoW) method in a recent correspondence with the SEC. The company points to Ethereum’s switch to proof-of-stake (PoS) in 2022 as a noteworthy security advancement.

In response to the SEC’s request for public feedback on Ethereum’s particular fraud and manipulation problems, Consensys provided an explanation. The business maintained that Ethereum’s security mechanism is superior to Bitcoin’s and dismissed the SEC’s worries as baseless.

Advancing Ethereum’s Case

Consensys contends that Ethereum’s PoS implementation not only matches but surpasses the security provided by Bitcoin’s PoW. Given the SEC’s approval of spot market Bitcoin ETFs earlier in the year, Consensys argues that rejecting Ethereum ETFs on security grounds would be unjustified.

The company underscores Ethereum’s decentralized development community and transparent network as pillars of its robust security framework. It asserts that Ethereum’s design minimizes the risk of fraud and manipulation, making it suitable for ETF listing and trading.

Consensys urges the SEC to acknowledge Ethereum’s advanced security features and approve ETFs based on its technology, citing the success of Bitcoin-based ETPs previously approved by the Commission.