MetaMask Parent Company Calls on SEC to Approve Ethereum Spot Market ETFs

MetaMask Parent Company Calls on SEC to Approve Ethereum Spot Market ETFs

The parent company of MetaMask, one of the world's most popular cryptocurrency wallets, has asked the US Securities and Exchange Commission (SEC) to approve exchange-traded funds (ETFs) for the Ethereum (ETH) spot market. In a new letter to the SEC, Consensys asks the regulator to approve the approval of spot-market ETH ETFs because the firm believes Ethereum's proof-of-stake consensus mechanism, which the company switched to in 2022, is more secure than Bitcoin's (BTC) proof-of-work system.

According to Consensys, the SEC had previously sought public comment on how to address the “unique concerns” surrounding Ethereum regarding fraud and manipulation. Consensys responds by saying that the SEC’s concerns are “completely unfounded” and that Ethereum’s security model is better than Bitcoin’s.

Consensys continues to argue that given the approval of BTC ETFs for the spot market in January, it would make no sense to reject Ethereum ETFs for security reasons. Ethereum's implementation of proof-of-stake consensus mechanism, decentralized developer community and inherent network transparency create a robust security framework that significantly reduces the risk of fraud and manipulation compared to Bitcoin, according to Consensys.

There is no understandable reason to reject the listing and trading of the iShares Ethereum Trust due to concerns about Ether's vulnerability to fraud and manipulation. We call on the Commission to recognize the advanced protections built into Ethereum's design, which not only exceed the exemplary security and resiliency protections underlying the Bitcoin-based ETPs previously approved by the Commission.

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