Consensys has contacted the United States Securities and Exchange Commission (SEC), requesting that Ethereum’s superior security features be considered and thoroughly discussed. Consensys urges SEC to approve Ethereum’s safety measures. It has been responding to SEC inquiries about concerns with the Ethereum Proof of Stake (PoS) technology and enabling Ethereum ETFs.
In the submission, the company stated that Ethereum’s PoS system includes built-in safeguards to prevent fraud and manipulation, potentially exceeding the security levels of Bitcoin’s Proof of Work model. The comparison is significant, given that the SEC has approved the trading of Bitcoin-based ETFs.
ConsenSys illustrates how Ethereum’s speedy block finality strengthens the decentralized system through a random checking mechanism. However, there are repercussions for breaching the rules. This makes the blockchain more resistant to tampering.
Consensys discussed what Ethereum could offer in terms of environmental and security challenges by leveraging a decentralized community as a security and transparency enhancer. It is said to be as secure and long-lasting as any other, with some even claiming that it may be more secure than Bitcoin ETFs, one of the few regulatory-approved ETFs on the market today.
Consensys is working to make it easier to use web3 technologies. Getting the SEC to approve Ethereum ETFs is a critical step in the process. The letter to the SEC demonstrates Consensys’ commitment to providing educated opinions on the changing world of digital assets.
