CFTC Embarks On A Quest For Knowledge About Ethereum

The Commodity Futures Trading Commission (CFTC), based in the United States, desires to know more about other digital assets aside Bitcoin, and Ethereum is what they wish to start with. Regarding the matter, a Request For Input (RFI), was issued officially by the Commission.

Ethereum and The RFI

On Tuesday, December 11, a press release was published which contained the desire of the Commission to gain additional knowledge of other cryptocurrencies in existence. The press release noted that the CFTC needs more knowledge about the Ethereum network and the Ether tokens. According to the press release;

“All comments must be received within 60 days of publication in the Federal Register. The RFI also seeks to understand similarities and distinctions between Ether and Bitcoin, as well as Ether-specific opportunities, challenges, and risks.”

Questions such as the mechanics, use cases, basic technology and risks of Ethereum will be part CFTC’s Return For Input to understand the technology better. The information obtained will be beneficial to the fintech division of CFTC, as stated by the Commission. In order to give a response to the RFI, 60 days have been provided for the public to do so.

The Search into ETH Futures

Twenty-five questions in total make up the RFI, and they are centered on both Ethereum and Ether. The questions come in different categories which include governance, custody, technology, and so on. In all the categories, one aspect stands out as the most interesting for CFTC, and that is the differences and similarities which exists between Bitcoin and Ethereum.
Under the section of “Markets, Oversight and Regulation,” the majority of the questions centered on Ether futures. The CFTC searches to know what risks lie in ETH futures trading and also the effect of ETH derivatives on the proof-of-work (PoW) of the network.
Though this an assumption, the question could be pointing to possible approval of ETH futures by the Commission. The possibility of Ether futures has been in circulation in the industry for a greater part of 2018. The picking out of ETH and BTC by the SEC as zero securities only intensified the rumors.

CFTC’s Positive Attitude towards Cryptocurrency

The RFI works in line with the approach that the CFTC has adopted towards the crypto industry. J. Christopher Giancarlo, the Commission Chair, has expressed positive sentiments with regards to cryptocurrencies in the past . A ‘do no harm’ approach was suggested by the CFTC in September concerning the regulation of cryptocurrencies.
The CFTC is known to be tolerant towards virtual currencies, but in the event of malpractice and fraud, it has not wasted time to prosecute such cases. The Commission expressed its obligation to watch over the crypto industry.

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