ConsenSys asks SEC to approve ETH ETF

Expectations surrounding the approval of an Ethereum ETF are rising as the Securities and Exchange Commission (SEC) takes a closer look at Ethereum's security situation. Meanwhile, the move has dampened market sentiment recently, with market participants expecting a delay in Ethereum ETF approval.

Notably, blockchain company ConsenSys has taken a step forward and asked the SEC to recognize Ethereum's advanced safeguards amid concerns about possible approval delays.

ConsenSys supports approval of Ethereum ETF

To strengthen the case for the Ethereum ETF, ConsenSys submitted a comment letter to the SEC highlighting the robust security measures inherent in Ethereum's design. The letter, shared on Consensys, refers to an SEC investigation into Ethereum's proof-of-stake (PoS) consensus mechanism and its vulnerabilities to fraud and manipulation.

Additionally, ConsenSys claims that Ethereum's PoS implementation not only meets but exceeds the security standards established by Bitcoin's proof-of-work (PoW) consensus model. The model has already received SEC approval for a related Exchange Traded Product (ETP). Additionally, the company highlights several key features of Ethereum's PoS model, including faster block finality, a decentralized validation process, and significant penalties for protocol violations.

Meanwhile, the letter highlights Ethereum's resilience to attacks, citing research showing that the cost of compromising Ethereum's network is significantly higher than Bitcoin's. Additionally, ConsenSys highlights the environmental benefits of Ethereum PoS, which consumes significantly less energy than Bitcoin PoW.

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Promoting regulatory clarity

ConsenSys’ aggressive stance in advocating for approval of the Ethereum ETF reflects the company’s commitment to accelerating the adoption of blockchain technology. Consensys aims to pave the way for broader accessibility of decentralized finance (DeFi) and Web3 applications by engaging in constructive dialogue with regulatory bodies such as the SEC.

Meanwhile, the outcome of the deliberations will impact the crypto market on a broader scale as the SEC evaluates comments provided by ConsenSys and other interested parties. In other words, this outcome will not only impact the trajectory of the Ethereum market, but also set a precedent for future regulatory decisions in the crypto space.

Navigating the complex landscape of cryptocurrency regulation requires a collaborative effort between industry players and regulators to foster innovation while ensuring investor protection. However, despite ConsenSys pressure, Ethereum price was down 1.84% at the time of writing, trading at $3,503.43.

The trading volume of the second-largest cryptocurrency also decreased by 7.55% in the past 24 hours to $12.79 billion. Notably, in the past 24 hours, ETH price reached a high of $3,575.59 and a low of $3,475.73.

Also read: Dogecoin whale sells $140 million in Doge, what happens next if price turns soft?

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Mr. Rupam is a seasoned professional with three years of experience in the financial markets and has honed his skills as a meticulous research analyst and an insightful journalist. He enjoys exploring the dynamic nuances of the financial landscape. Currently working as an associate editor at Coingape, his Rupam expertise transcends traditional boundaries. His contributions include breaking news articles, digging into AI-related developments, providing real-time crypto market updates, and presenting insightful economic news. Rupam's journey is marked by a passion for demystifying the complexities of finance and delivering impactful stories that resonate with diverse audiences.

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