Consensys responded to the U.S. Securities and Exchange Commission’s request for information on whether Ethereum ETH
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In a letter of comments filed with the regulatory agency, the blockchain and web3 software development company behind the popular MetaMask wallet said these concerns are, in Consensys’ own summary, “completely baseless.”
“In fact, Ethereum’s PoS implementation meets and even exceeds the security of Bitcoin’s Proof of Work (PoW), which underpins Bitcoin-based ETFs already approved for trading by the SEC” , explained Consensys in a blog post.
Consensys also noted that Ethereum features faster block finality than the Bitcoin network and separation of duties between proposers and attesters that helps prevent control by large stakeholders, costs more to attack than Bitcoin, penalizes validators for violating protocol rules and is more environmentally friendly than Bitcoin. . (As The Block reported earlier this week, the 13,900 nodes supporting the Ethereum network are now running more than 1 million validators.)
He also noted that Ethereum’s active developer community is larger than Bitcoin’s and that the blockchain is also fully public and transparent.
“We urge the SEC to recognize the advanced safeguards inherent in the design of Ethereum,” Consensys wrote, “which not only meet but exceed the exemplary security and resiliency guarantees underlying Bitcoin-based ETPs that have previously been approved by the SEC.”
Although spot bitcoin ETFs have proven extremely popular, whether or not a spot ether ETF will be approved in May of this year remains up for debate. Bloomberg ETF analysts recently estimated the chances of a place Ethereum Exchange Traded Fund gaining approval in May to be around 30%.
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