Coinbase, Weiss Ratings, R3 and Others Respond to CFTC’s Questions About Ethereum

Coinbase, a U.S. based cryptocurrency exchange, R3, a blockchain company, and others have given responses to the request made by the United States Commodity Futures Trading Commission (CFTC). The latter in December 2018 wanted to know the principles of Ethereum and how it differs from other blockchains.

Reputable Companies in Cryptocurrency Industry Send Responses

Several companies in the cryptocurrency industry have sent in responses to the query made by the CFTC. Some of these firms are Coinbase, R3, Ethereum Foundation, ZeroEx Inc., Weiss Cryptocurrency Ratings. Others include the Chamber of Digital Commerce, trueDigital, and Axoni.

In December 2018, CFTC published its “Request for Input on Crypto-Asset Mechanics and Markets.” The request consisted of 25 questions regarding cryptocurrencies and specifically, the Ethereum network. They aimed to understand the similarities and differences when it comes to cryptocurrencies as well as the “technology, mechanics, and markets for virtual currencies beyond Bitcoin.”

Coinbase Response to CFTC

Coinbase answered some questions, and one of such is, “Please list any potential impacts on Ether and the Ethereum Network that may arise from the listing or trading of derivative contracts on Ether.” The cryptocurrency exchange outlined that derivative contracts have the potential of reducing price volatility. As such, this can lead to more commercial usage and an increased need for blockchain transactions to be recorded.

Charley Cooper, R3’s managing director, on the other hand, predicted that virtual currencies that are backed by assets such as gold would form the future for the cryptocurrency industry. These are digital currencies whose price are known to be less volatile than Bitcoin and other cryptocurrencies.

R3 Makes Reference to Corda Platform and its Adoption by Industries

Cooper also referred Corda, the company’s blockchain platform and stated that it had been adopted by industries ranging from those in finance, healthcare, insurance, financial services, to shipping. He also stated that although Corda was built for the financial services industry, it has use cases in other industries.

One more company who made comments is Blockchain LLC, an all-in-one crypto company. Lee A. Weiss who represented the organization stated that the creators of Ethereum were inspired by Bitcoin’s ability to provide a record of transactions that have occurred without being centrally controlled. The developers also saw Bitcoin’s blockchain as something that can facilitate the development of other technologies such as Executable Distributed Code Contracts (EDCCs).

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