CFTC Seeks Public Feedback Via “Request for Input” on Ethereum (ETH)
The U.S. 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, they need to have a greater understanding of the components in it, which is exactly what the CFTC has decided to do with Ethereum.
Based on a “Request for Input” (RFI), which the regulator made public on Tuesday, the CFTC explains the information that they want to learn about Ethereum through the public. Some of these topics concern the breakdown of its technology, while other parts of the RFI deal with the way that this technology is applied.
When this type of document is filed, the recipient has up to 60 days to provide the requested replies. They can be sent through email, hand delivery, or mail. A press release about the document states,
“The CFTC expects the comments and information received will benefit LabCFTC, the CFTC’s FinTech initiative, and help to inform the Commission’s understanding of these emerging technologies.”
Additional details show that the RFI will help with the regulatory measures made for the Ethereum market and its derivatives. The document adds,
“The input from this request will advance the CFTC’s mission of ensuring the integrity of the derivatives markets as well as monitoring and reducing systemic risk by enhancing legal certainty in the markets. The RFI seeks to understand similarities and distinctions between certain virtual currencies, including here ether and bitcoin, as well as ether-specific opportunities, challenges, and risks.”
In total, there are 25 questions posed about both the coin and the network, which discuss nearly every aspect of Ethereum. The press release notes that the questions included are in regard to:
“the underlying technology, opportunities, risks, mechanics, use cases, and markets, related to Ether and the Ethereum Network.”
One of the questions posed goes much deeper than general functionality of Ethereum, asking,
“How would the introduction of derivative contracts on ether potentially change or modify the incentive structures that underlie a proof-of-stake model?.”
Ultimately, the CFTC wants this information to help with the authority’s fintech initiative – LabCFTC, which was launched in May of last year.
Its ability to support the innovation of fintech is a necessity to CFTC, helping them to “be proactive and forward-thinking as FinTech applications continue to develop, and to help identify related regulatory opportunities, challenges, and, risks.”