In a letter to the SEC, ConsenSys, the parent company of MetaMask, expressed support for the approval of a spot Ethereum ETF. The crypto company highlights the security and environmental advantages of Ethereum compared to Bitcoin.
ConsenSys advocates for a spot Ethereum ETF
The parent company of the popular MetaMask wallet, ConsenSys, recently submitted a comment letter to the Securities and Exchange Commission (SEC).
In this missive, the company plead in favor of approving a spot Ethereum ETF, emphasizing the superior security of the Ethereum blockchain compared to Bitcoin.
According to ConsenSys, Ethereum's proof-of-stake (PoS) consensus mechanism offers advanced security guarantees that surpass those of the proof-of-work (PoW) used by Bitcoin. The firm particularly highlights Ethereum's distributed and randomized validation process which prevents control by large stakeholders.
ConsenSys also claims that the total cost of attacking the Ethereum network is significantly higher than for Bitcoin, making a compromise less likely. Additionally, PoS incorporates severe penalties for validators breaking the rules, an additional deterrent.
Ethereum, greener and more decentralized than Bitcoin!
Beyond security aspects, ConsenSys highlights the environmental advantages of Ethereum since its move to PoS. According to the estimates provided, the annual energy consumption of Ethereum would be 30,000 times lower than that of Bitcoin.
The comment letter also argues that Ethereum's developer community, larger and more active than Bitcoin's, strengthens the network's resilience to potential attacks. The transparency inherent in Ethereum's development would allow close monitoring of the protocol.
In sum, ConsenSys urges the SEC to recognize the exemplary security guarantees that Ethereum offers through its design. For the company, these assets fully justify the approval of a spot Ethereum ETF, in the same way as the spot Bitcoin ETFs already authorized by the regulator. A solidly supported argument that could tip the scales in favor of the crypto Ether.
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