ConsenSys has responded to a U.S. Securities and Exchange Commission (SEC) investigation into potential fraud and manipulation risks regarding Ethereum’s proof-of-stake system, specifically the Spot Ether Exchange Traded Fund (ETF).
by comment letter It has been submitted ConsenSys, the blockchain and Web3 software developer responsible for the popular MetaMask wallet, told regulators that concerns about fraud and manipulation were unfounded.
Consensus explained in blog post,
“In fact, Ethereum’s PoS implementation meets and even exceeds Bitcoin’s proof-of-work (PoW) security, which is the basis for Bitcoin-based ETFs that have already been approved for trading by the SEC. Masu.”
Ethereum’s infrastructure companies are concerned about faster block finality than Bitcoin, shared responsibility between proponents and verifiers to prevent stakeholder domination, higher attack costs, penalties for violating validator rules, and He highlighted the benefits of Ethereum, including its superior environmental sustainability in comparison.
ConsenSys highlighted that Ethereum boasts a larger developer community than Bitcoin and operates on a fully transparent public blockchain. ConsenSys asked the SEC to recognize Ethereum’s superior security features over those of Bitcoin-based ETPs previously approved by the SEC.
Spot Bitcoin ETFs have proven to be very popular, but whether a Spot Ether ETF will be approved this May is still up for debate.
Related: Bitwise file with SEC for Spot Ether ETF list
The SEC’s final deadline to approve or deny the next round of Spot ETH ETF applications, starting with VanEck’s investment vehicle, comes on May 23rd. Many experts seem optimistic about approval in 2023, but some suggest the commission could reject the application in 2024.
Several companies have applications for spot ETH ETFs pending approval or rejection, including Fidelity, Hashdex, and ARK 21Shares. The SEC began approving investment vehicles tied to Ether futures in October 2023.
Cryptocurrency gamblers are betting on whether the Spot Ether ETF will be approved by the U.S. Securities and Exchange Commission by May 31st. Overall bets on the ETF’s outcome have reached at least $12 million in prediction markets. Ultimately, the SEC approved the trading and listing of 11 spot Bitcoin ETFs on January 10th.
Investment management firm Grayscale expressed confidence that the SEC will issue a favorable decision on the Spot Ether ETF by May. On March 25, Grayscale Chief Legal Officer Craig Sahm said the SEC’s perceived “lack of engagement” with applicants does not indicate whether the ETF will be approved.
magazine: Ether ETF faces Senate opposition, Wright is not Satoshi, and Denkun takes off: Hodler’s Digest, March 10-16
