- The CFTC is seeking the opinion of the public on behalf of its fintech arm LabCFTC to enhance its policy formulation process
- The CFTC says the Request for Information (RFI) will be published in the Federal Register
- The RFI also seeks to find out similarities and differences between and all comments must be received within 60 days of publication in the Public Register
The United States Commodity Futures Trading Commission (CFTC) is seeking for public comments concerning the Ethereum smart contracts blockchain network and its native altcoin, ether (ETH), to enable it to have a solid understanding of the world’s third-largest crypto-asset and find out how to amenably regulate it, according to a press release dated December 11, 2018.
The CFTC wants to Know more About Ethereum
While bitcoin (BTC) remains the king of cryptocurrencies, with major U.S. financial regulators recognizing it as the only blockchain-based virtual currency that’s not a security, the CFTC has released a Request For Information (RFI) to help it gather more knowledge about the Ethereum network and its native altcoin, ether (ETH).
As contained in the CFTC press release, the Commission is interested in entirely understanding the nitty-gritty of Ethereum, including its use cases, risks, opportunities, mechanics and more, as it expects that the feedback received will be highly beneficial to its FinTech arm, LabCFTC and enable them to come up with robust, yet innovation-friendly regulations.
In addition, the CFTC also seeks to know the similarities and distinctions between Ether and Bitcoin, as well as opportunities, challenges, and risks peculiar to Ether.
Launched in 2017 by the Commission, the primary objective of LabCFTC is to make the CFTC more easily accessible to blockchain-linked startups, inform the Commission about new technologies, ensure the agency has the essential tools and understanding to keep pace with the rapidly evolving markets.
If all goes as planned, the CFTC says it expects to receive comprehensive feedback from the public within 60 days of publication in the Federal Register.
Ether Not a Security?
Although XRP has replaced Ether as the second largest digital asset in the marketplace by market capitalization, in the minds of many cryptocurrency enthusiasts as well as financial regulators, Ethereum (ETH) remains second in command after the world’s flagship crypto, Bitcoin (BTC).
Earlier in June 2018, William Hinman, the director of corporate finance at the Securities and Exchange Commission (SEC), declared Ether is not a security.
“Based on my understanding of the present state of ether, the Ethereum network, and its decentralized nature, current offers and sales of ether are not securities transactions,” noted Hinman at the time.
At press time, the price of Ether sits at a lowly $91, with a market cap of $9.48 billion and a 24-hour trading volume of $1.62 billion., as seen on CoinMarketCap.