Consensys Calls on the SEC to Acknowledge the Superior Security Measures Used by Ethereum

The Consensys team has petitioned the SEC to acknowledge Ethereum’s built-in strong security features.

Renowned blockchain software technology firm Consensys has petitioned the U.S. Securities and Exchange Commission (SEC) to acknowledge the robust security features built into Ethereum. In light of the SEC’s call for feedback on possible Ethereum ETF approvals, the business suggested this.

Consistent with the requests, the SEC inquired as to whether the Proof of Stake (PoS) protocol on Ethereum has any “specific risks” about manipulation and fraud that the regulator needs to take into account. In response to the inquiry, Consensys said that these fears do not have any basis in reality.

The blockchain firm released a letter outlining how the Proof of Work (PoW) implementation on Ethereum is more secure than Bitcoin’s PoW. Cryptocurrency exchange-traded funds (ETFs) backed by Bitcoin, which have previously received trading approval from the SEC, are based on Consensys’ Proof of Work system.

Ethereum PoS features robust built-in anti-fraud and anti-manipulation protections, as pointed out by Consensys in their comment letter. The firm emphasized how its implementation is more secure than Bitcoin’s PoW consensus process.

The distributed and randomized validation procedure that prohibits pronounced stakeholder control is one of Consensys’s highlights, along with Ethereum’s speedier block finality. The total cost of attack, reduced penalties, and greater security with environmental advantages are some of the other Ethereum attributes that Consensys emphasized as part of Ethereum’s fraud and manipulation prevention mechanism.

Consensys also pointed out that the blockchain’s openness and decentralized community make it more secure. The blockchain business highlighted the robust security features built into Ethereum. It said that these protections would be just as good as, if not better than, the exceptional security and resilience measures that the SEC has previously authorized for ETPs based on Bitcoin.

In an effort to get billions of consumers to Web3, Consensys made its intentions public. The blockchain company is actively working toward this goal by pushing for the approval of the Ethereum ETF. Therefore, the comment letter is an effort to move things along and provide people with the information they need.

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