Consensys, the blockchain and Web3 software development company behind the MetaMask wallet, has responded to the United States Securities and Exchange Commission (SEC) regarding concerns about fraud and manipulation in Ethereum’s proof-of-stake system. In a comment letter submitted to the regulatory agency, Consensys dismissed these concerns as unfounded.
In a blog post, Consensys highlighted the advantages of Ethereum’s infrastructure compared to Bitcoin. They emphasized that Ethereum has quicker block finality, a division of responsibilities to prevent stakeholder dominance, higher attack costs, penalties for rule violations, and better environmental sustainability. Consensys also pointed out that Ethereum has a larger developer community and operates on a transparent and public blockchain. They urged the SEC to recognize these superior security features when considering Ethereum-based exchange-traded funds (ETFs).
The approval of a spot Ether ETF in May is still uncertain, despite the popularity of spot Bitcoin ETFs. The SEC’s final deadline for approving or denying spot ETH ETF applications is May 23, starting with VanEck’s investment vehicle. While there is optimism about approval in 2023, some experts believe that the SEC could deny applications and delay approval until 2024. Firms such as Fidelity, Hashdex, and ARK 21Shares have pending spot ETH ETF applications.
Crypto gamblers have placed bets on the SEC’s decision regarding spot Ether ETFs, with at least $12 million wagered on the predictions market. The SEC approved the trading and listing of 11 spot Bitcoin ETFs on January 10. Grayscale, an investment management company, remains confident in a favorable decision from the SEC for spot Ether ETFs by May. They believe that the SEC’s lack of engagement with applicants should not be seen as an indication of approval or denial.
In other news, Senate opposition has been raised against Ether ETFs, Craig Wright is not recognized as Satoshi, and Dencun has gone live. This update was featured in Hodler’s Digest from March 10-16.