In a bold move, Consensys, a giant in the world of blockchain software, has called on the US Securities and Exchange Commission (SEC) for greater understanding and acceptance of the security innovations brought by Ethereum, especially in response to the SEC's recent interest. in Ethereum-based ETF applications.
The SEC, which has been seeking public comment on the viability and security of these ETFs, has raised specific questions about whether Ethereum's Proof of Stake (PoS) mechanism could present “unique concerns” in terms of fraud and manipulation. Consensys promptly presented convincing arguments that such concerns have no basis in reality.
In a detailed letter, Consensys argued that Ethereum's transition to PoS not only maintains but potentially exceeds the levels of security offered by the Proof of Work (PoW) model used by Bitcoin – a model that already underpins several ETFs. approved by SEC. The company emphasized that PoS offers robust mechanisms against fraud and manipulation, surpassing PoW by increasing resistance to attacks and tampering.
Among the points highlighted by Consensys are the faster completion of blocks and a distributed and random validation process, which together make it difficult for any group of interested parties to master it. The letter also highlights the environmental benefits of PoS, in addition to its effectiveness in reducing the total cost of attacks and increasing overall network security.
Consensys also pointed to the strength of the decentralized community and the transparency of the blockchain as factors that intensify the security of Ethereum. According to the company, Ethereum's advanced safeguards are not only comparable to, but superior to, Bitcoin-based products already approved by the SEC.
In addition to defending Ethereum's security features, Consensys revealed ambitious plans to bring billions of users into the web3 era, highlighting the approval of Ethereum ETFs as a crucial step in this direction. The letter sent to the SEC represents a significant effort to influence progress and disseminate critical information to the public about the capabilities and future of Ethereum.
