Consensys, the software company behind MetaMask digital wallet, is advocating for U.S. regulators to acknowledge the advanced safeguards built into Ethereum (ETH). The Fort Worth, Texas-based firm submitted a letter in response to the U.S. Securities and Exchange Commission’s (SEC) call for public comments on Nasdaq’s request for a rule change to allow the trading of iShares Ethereum Trust.

In the letter, Consensys addressed regulatory concerns about Ethereum’s vulnerability to fraud and manipulation, arguing that these concerns are unwarranted. The company highlighted several key aspects of Ethereum’s proof-of-stake (PoS) implementation that make it more resistant to tampering compared to Bitcoin’s proof-of-work (PoW) consensus model, which supports Bitcoin-based exchange-traded products previously approved by the SEC.

Consensys emphasized Ethereum’s faster block finality under PoS, ensuring provable transaction finality in a shorter timeframe than PoW. Additionally, Ethereum’s PoS utilizes a distributed and randomized validation process to prevent large stakeholder control, reducing the risk of manipulation. The company also pointed out Ethereum’s slashing penalties for validators who breach protocol rules and the network’s Byzantine fault tolerance, making it more costly to attack Ethereum than Bitcoin.

Furthermore, Consensys highlighted the environmental benefits of Ethereum, noting that its consensus mechanism is more eco-friendly than Bitcoin’s. The company urged the SEC to approve spot Ethereum ETFs, emphasizing its dedication to onboard the next billion users to web3. Consensys sees its comment letter as a step towards progress and aims to provide relevant information to the public.

Consensys expressed its willingness to engage in ongoing, constructive dialogue with the SEC and its staff on this matter. In addition to Consensys, other industry players have also shared their thoughts on an Ethereum ETF. Earlier reports revealed that Coinbase had discussions with the SEC regarding a proposal by Grayscale for an ETH exchange-traded fund.

Coinbase presented to the regulatory body its commitment to implementing a surveillance sharing agreement with the Chicago Mercantile Exchange (CME) to monitor any potential fraud or manipulation in the Ethereum ETF market if approved.

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