NEW YORK, NY, Monday, April 8, 2024- Blockchain software company Consensys is disputing the U.S. Securities and Exchange Commission’s (SEC) concerns regarding spot Ether exchange-traded funds (ETFs).
In a recent comment letter 1 submitted to the regulatory agency, Consensys addressed the SEC’s inquiries about potential fraud and manipulation risks associated with Ethereum’s proof-of-stake (PoS) system, particularly concerning spot Ether ETFs. The company asserts that these concerns are unfounded.
Consensys highlighted Ethereum’s larger developer community and its operation on a fully transparent and public blockchain compared to Bitcoin. They urged the SEC to acknowledge Ethereum’s superior security features, surpassing those of Bitcoin-based ETFs already approved by the commission.
The SEC has yet to approve any spot Ether ETFs, although several applications from investment firms are pending. In January, the commission approved several spot Bitcoin ETFs, paving the way for greater institutional investment in the leading cryptocurrency.
The debate over spot Ether ETFs centers on the potential risks associated with the underlying asset and the regulatory framework surrounding cryptocurrencies. Consensys’ arguments highlight the ongoing discussions between the crypto industry and regulators as they navigate the evolving landscape.
