Ethereum

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<p dir="ltr">Consensys, a prominent player in the blockchain and Web3 software space, has&nbsp;<a href="https://consensys.io/blog/comment-letter-to-sec-on-eth-etf-approval-pos" rel="noopener noreferrer nofollow">submitted a compelling argument</a> to the Securities and Exchange Commission (SEC), urging it to recognize the advanced safeguards inherent in Ethereum’s design and grant approval of a spot Ethereum exchange-traded fund (ETF).</p>
<h2 id="consensys-argument-for-ethereum-etf-approval">Consensys' argument for Ethereum ETF approval</h2>
<p dir="ltr">In their comment letter to the SEC, Consensys addresses concerns raised by the Commission regarding Ethereum's proof-of-stake (PoS) consensus mechanism and the potential for fraud and manipulation.</p>
<p dir="ltr">In Consensys’ response to the regulatory body, it maintains that the <a href="https://u.today/opinions/sec-v-ethereum-what-to-expect-and-why-it-is-crucial-to-crypto-market" rel="noopener noreferrer nofollow">SEC's scrutiny and concerns</a> are “wholly without merit” given that Bitcoin-based ETFs have already been approved for trading by the SEC. They maintain that the anti-fraud and anti-manipulation mechanisms present in Ethereum's PoS are more robust and surpass the resilience of Bitcoin's PoW consensus model against tampering.</p>
<p dir="ltr">The comment letter highlighted key reasons the SEC should go ahead and grant approval. Consensys insisted that Ethereum's transition to PoS enables provable transaction finality, ensuring that blocks are irreversibly confirmed in a shorter time frame compared to PoW systems.</p>
<p dir="ltr">Its PoS model involves segregated roles for block validators, which prevents concentrated control. This, it claims, mitigates the risk of manipulation and adds an extra layer of security. The other consideration about its classification was also addressed <a href="https://u.today/blackrock-boss-says-ethereum-etf-is-possible-even-if-eth-is-security" rel="noopener noreferrer nofollow">by BlackRock CEO Larry Fink</a>, who believes that an Ether-based spot ETF could still be launched even if Ethereum ends up being labeled a security.</p>
<h2 id="contrasting-ethereum-s-byzantine-fault-tolerance-with-bitcoin-s">Contrasting Ethereum's Byzantine fault tolerance with Bitcoin's</h2>
<p dir="ltr">The Web3 software company says Ethereum's Byzantine fault tolerance (BFT) is higher than Bitcoin's. It asserts that Ethereum’s mechanism of penalizing validators who violate protocol rules by slashing their stakes serves as a deterrent against malicious behavior. Additionally, Ethereum's PoS model is more energy-efficient and environmentally friendly than Bitcoin's PoW.</p>
<p dir="ltr">Consensys makes a passionate appeal to the regulatory body ahead of the possible approval by stating, “We urge the SEC to recognize the advanced safeguards inherent in Ethereum’s design, which not only meet but exceed the exemplary security and resilience safeguards underlying Bitcoin-based ETPs that have previously been approved by the SEC.”</p>
<p dir="ltr">Although the Ethereum ETF is being constantly <a href="https://u.today/spot-ethereum-etf-proposal-delayed-by-sec" rel="noopener noreferrer nofollow">delayed by the SEC</a>, stakeholders anticipate a decision in the coming months. Regardless, Ethereum continues to gain traction as the second-largest cryptocurrency with a price of $3,502.43.</p>

Spot Ethereum ETF: Consensys Makes Compelling Case for Approval

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