Consensys Urges SEC to Recognize Ethereum’s Advanced Safeguards in Comment Letter on ETH ETF Approval

Consensys has submitted a remark letter to the U.S. Securities and Change Fee (SEC) advocating for the approval of Ethereum-based exchange-traded funds (ETFs). I

In a latest request for public feedback on Nasdaq’s software for a rule change to allow the buying and selling of iShares Ethereum Belief, the SEC particularly inquired about distinctive considerations associated to ether’s proof of stake consensus mechanism and focus of management or affect. Consensys responded to those considerations by explaining that Ethereum’s PoS mannequin incorporates sturdy anti-fraud and anti-manipulation mechanisms.

One of many key benefits highlighted by Consensys is quicker block finality. With Ethereum’s transition to PoS, transaction finality is achieved inside a shorter timeframe, making it safer towards potential assaults. The corporate additionally emphasizes the distributed and randomized validation course of employed in Ethereum PoS, which prevents massive stakeholder management and serves as a test towards manipulation.

Consensys additional addresses the idea of Byzantine fault tolerance (BFT), which measures the minimal proportion of community validators required for system integrity. Researchers have discovered that Ethereum’s BFT price to assault the community is considerably greater than Bitcoin’s, lowering the probability of community compromise. Moreover, Ethereum’s PoS mannequin consists of slashing penalties for validators who violate protocol guidelines, performing as each a deterrent and a punitive measure.

The remark letter emphasizes the environmental advantages of Ethereum’s PoS mannequin in comparison with Bitcoin’s PoW. With considerably decrease vitality consumption, Ethereum demonstrates its dedication to sustainability.

Consensys highlights the decentralized group and transparency of Ethereum as extra safeguards. The lively and sizable developer group, mixed with public growth work, makes Ethereum extra immune to assaults and allows complete monitoring of community actions.

In conclusion, Consensys urges the SEC to acknowledge the superior safeguards inherent in Ethereum’s design. The corporate asserts that Ethereum’s PoS implementation meets and exceeds the exemplary safety and resilience safeguards underlying Bitcoin-based ETPs which have beforehand been accredited by the SEC. Consensys considers its remark letter to be a step in direction of driving progress and offering related and helpful data to the general public. The corporate appears ahead to an ongoing, constructive dialogue with the SEC and its employees.

Picture supply: Shutterstock

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