Consensys urges SEC to ‘recognize’ spot Ethereum ETFs safeguards

One of the highlights of Consensys’ comment letter is Ethereum’s faster block finality under PoS, which ensures provable transaction finality within a shorter timeframe than PoW. Additionally, Ethereum’s PoS relies on a distributed and randomized validation process that prevents large stakeholder control, thus mitigating the risk of manipulation.

The blockchain technology company also emphasized Ethereum’s slashing penalties for validators who violate protocol rules and the network’s Byzantine fault tolerance, making it significantly more costly to attack Ethereum than Bitcoin.

Moreover, it highlighted Ethereum’s environmental benefits, noting that the network’s consensus mechanism is more environmentally friendly than Bitcoin’s.

In the letter, Consensys urged the SEC to approve spot Ethereum ETFs. The company emphasized its commitment to onboarding the next billion users to web3, stating that their comment letter is a step towards driving progress and providing relevant and useful information to the public.

The company expressed its readiness for ongoing, constructive dialogue with the SEC and its staff on the issue.

Other than Consensys, other players in the crypto space have also had their say regarding an Ethereum ETF. In early March, reports surfaced that Coinbase had met with the SEC to discuss a proposal by Grayscale for an ETH exchange-traded fund.

Per the reports, Coinbase made a presentation to the regulatory body where it committed to putting in place a surveillance sharing agreement with the Chicago Mercantile Exchange (CME) to check for any fraud or manipulation of the Ethereum ETF market if approved.