Consensys Says That SEC’s Ethereum ETF Concerns Are Baseless

Consensys, the company behind famous crypto wallet Metamask, has recently rejected the SEC’s concerns about Ethereum ETF’s as baseless and unfounded. In a report sent to the SEC, the company highlighted that ETH has a much larger developer community than Bitcoin(BTC). It also operates on a major and public blockchain, so the concerns about manipulation and fraud are unfounded.

The United States Securities and Exchange Commission is widely known for its anti-crypto stance. After approving the world’s first Bitcoin exchange funds, there’s been a lot of hype around Ethereum spot funds too. However, the SEC isn’t keen on approving Ethereum ETF funds, citing security, fraud, and manipulation concerns.

A Letter of Support

In a recent letter submitted to the SEC, Consensys said that such allegations are baseless. In fact, Consensys stated that Ethereum operates on a public blockchain, which eliminates any manipulation and fraud concerns. In the same letter, the company highlighted that Ethereum has a much larger developer community than Bitcoin, and urged the SEC to acknowledge its superior security features which surpass those of Bitcoin.

So far, Bitcoin ETFs have proved very popular. Ethereum ETFs should be approved in May this year, although that remains a subject to debate. The SEC should make a decision by May 23. Many experts were optimistic about Ethereum EFTs in 2023, but it seems that a decision will be made this year instead. The SEC began approving Ether instances investment vehicles in October 2023.

There’s been a heated debate between the crypto community and the Securities Commission over the subject. It went as far as crypto gamblers placing bets if ETH EFTs see the light of day this year. Grayscale, one of the many popular crypto investment companies, believes that the SEC will have a favorable decision by May. That month is just around the corner, so it’ll be interesting to see if the SEC breaks under pressure and approves them or reject future Ethereum ETFs.