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The United States. Commodity Futures Trading Commission (CFTC) is one of the authorities that governs certain aspects of the cryptocurrency world. However, to accurately create regulations and definitions for the market, it is necessary to have a better understanding of the components it contains, which is exactly what the CFTC has decided to do with Ethereum.
Based on an "Input Request" (RFI), which the regulator made public on Tuesday, the CFTC explains the information it wishes to know about Ethereum through the public. Some of these topics concern the breakdown of its technology, while other parts of the RFI relate to the way this technology is applied.
When this type of document is archived, the recipient has up to 60 days to provide the required answers. They can be sent by e-mail, hand delivery or mail. A press release on the document states,
"The CFTC expects that the comments and information received will benefit LabCFTC, the CFTC's FinTech initiative, and will help inform the Commission on understanding these emerging technologies."
Further details show that the RFI will contribute to the regulatory measures adopted for the Ethereum market and its derivatives. The document adds,
"The contribution of this request will foster the CFTC's mission to ensure the integrity of derivatives markets and to monitor and reduce systemic risk by increasing legal certainty in the markets." RFI seeks to understand the similarities and the distinctions between some virtual currencies, including ether and bitcoin, as well as opportunities, challenges and specific risks of the ether ".
In total, there are 25 questions on both the currency and the network, which cover almost every aspect of Ethereum. The press release notes that the questions included concern:
"The technology, the opportunities, the risks, the mechanics, the use cases and the underlying markets, related to Ether and the Ethereum network".
One of the questions asked is much more profound than the general functionality of Ethereum, asking,
"How could the introduction of derivative contracts on ether change or modify the incentive structures that underpin a stake test model?".
Ultimately, the CFTC wants this information to be of help with the fintech initiative of the authority – LabCFTC, which was launched in May last year.
Its ability to support fintech innovation is a necessity CFTC, helping them to "be proactive and forward-looking while FinTech applications continue to develop and help identify opportunities, challenges and regulatory risks".
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