In order to improve understanding of the Ethereum commission and its core technology, the CFTC announced the intention to publish a respective Request for Information (RFI) with the Federal Register.
The Commission for Commodity Commodities Trading in the United States (CFTC) is the authority that governs some crucial aspects of the world of cryptocurrency. In order to accurately create regulations and definitions for the market, they should have a better understanding of the components it contains, which is exactly what the CFTC has decided to do with Ethereum.
Commodity Futures Trading Commission (CFTC) is looking for an in-depth analysis of the Etherum blockchain. The official announcement published on December 11, 2018 states that the commission would need a better understanding of ETH and how it goes beyond the future of Bitcoin.
The declaration says:
"The Commodity Futures Trading Commission (CFTC) is seeking public comments and feedback in order to better inform the Commission on the understanding of technology, mechanics and markets for virtual currencies beyond Bitcoin, ie Ether and its use on the Ethereum network."
The document lists 25 different questions on the ether and network, divided into network goals, underlying technology, governance, markets and supervision, cybersecurity and custody.
The questions themselves touch on various issues and concerns discussed in space, including the next ethereum move to scalability tests, scalability issues, how the network is currently being used specifically and how ether deposits can be controlled, among others.
A longtime holder of position number two, the market capitalization of Ethereum has recently been superseded by XRP, although Ethereum still remains among the most popular blockchains for new tokens and cryptography-based applications. Many fans and traders breathed a huge sigh of relief last June, when the Securities and Exchange Commission (SEC) announced that it did not consider ether a security, since it had become too decentralized since its initial use.
Many traders have concluded that exchanges would soon begin to offer futures on Ether after William Hinman, who runs the SEC finance division, said six months ago that he did not believe the token in its current form was a security on which its agency had jurisdiction.
At the Yahoo finance summit, Hinman said:
"Based on my understanding of the current state of the ether, the Ethereum network and its decentralized structure, current offers and ether sales are not securities transactions."
He also mentioned the idea that, in the future, the pavilions would no longer require stock regulation.
He has declared:
"Over time, there may be other decentralized networks and systems where the regulation of tokens or coins that run on them as securities may not be required."
At the time, Cboe president Global Markets Inc., Chris Concannon, stated that the announcement canceled a "key hurdle for Ether's futures". Concannon later confirmed that SEC did not think that ether was a security at the time.
"What was interesting is that Mr. Hinman talked about how they also recognize that some coins that originally were titles can turn into different titles at a later time." I think that was the most important macro statement of the speech. in favor of the SEC's efforts on initial coin offerings From a registered exchange perspective, it is not fair to see people collecting money through these unregistered offers and only using coins as a reason why they should not register. Clear enough that you can call it a coin or you can call it a certificate, but in both cases you have to register. "
In an information request (RFI) to be published in the Federal Register, the CFTC asks for public feedback on a range of questions related to technology, opportunities, risks, mechanics, use cases and underlying markets. , related to Ether and the Ethereum network.
"All comments must be received within 60 days of publication in the Federal Register." RFI also seeks to understand the similarities and distinctions between Ether and Bitcoin, as well as the opportunities, challenges and risks specific to Ether.
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. "
Founded in May 2017, LabCFTC is a dedicated hub for "engagement with the fintech innovation community", with the aim of examining "new developments in the fintech regulation on the market", as noted by the President of CFTC Christopher Giancarlo at the start of this year.
Just to remember, in July of this year, there was an audition, titled "Examining the upcoming agenda for the CFTC", which was convened by the commission for the & # 39; House agriculture. During the hearing, at the Austin Scott conference Giancarlo was asked to explain the objectives of LabCFTC, a dedicated hub for "engagement with the fintech innovation community" that was created by the agency last year.
"LabCFTC is our gateway to these new fintech regulatory developments in the market, and it is so important for us to be able to understand these innovations that are coming down so fast," explained the president.