Consensys Urges SEC to Greenlight Spot Ethereum ETFs

Consensys has addressed the United States Securities and Exchange Commission’s inquiry into whether Ethereum’s proof-of-stake consensus mechanism raises unique concerns regarding spot Ether exchange-traded fund (ETF) applications.

In a comment letter submitted to the regulatory agency, the blockchain and web3 software development firm, known for its MetaMask wallet, dismissed such concerns as “wholly without merit.”

Consensys asserted that Ethereum’s proof-of-stake (PoS) implementation not only meets but exceeds the security of Bitcoin’s proof of work (PoW), the basis for approved bitcoin-based ETFs.

Highlighting Ethereum’s advantages such as faster block finality, segregation of duties between proposers and attesters to prevent stakeholder dominance, higher attack costs compared to Bitcoin, penalties for protocol rule violations, and greater environmental friendliness, Consensys emphasized the robustness and integrity of the Ethereum network.