The U.S. Commodities and Futures Trading Commission (CFTC) has expressed interest to understand the Ethereum technology and its entire ecosystem. On Tuesday, the commodities regulator filed a “Request for Input (RFI)” in the Federal Register seeking public comments.
Furthermore, the CFTC wants to get more information on Ethereum technology – its functionality and usability. The regulator also wants to know regarding the market built around it. As a result, the agency has kept a 60-day window for respondents to submit their answers. One can submit their answers either through the mail, email or hand delivery.
The official press release notes,
“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.”
RFI Will Help in More Than a Few Ways
Providing additional details, the RFI will inform and convey about the agency’s oversight on the Ethereum network. Moreover, it will also inform about any derivatives market related to digital currencies.
Published by the agency’s LabCFTC FinTech initiative, the RFI focuses on educating the public about crypto assets. Moreover, it also acts an intermediate between the regulator and crypto market participants.
The Federal Register document says,
“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.”
A Know-How About the Ethereum Network and Its Functioning
The document also has got nearly 25 questions for Ether and the network. The questions are around the network technology, the network purpose, its governance, and market. There are also a few questions about issues relating to custody, cybersecurity, and oversight.
The questions also touch upon the recent concerns and issues surrounding the Ethereum ecosystem. This includes future upgrades, scalability issues, proof-of-stake. The questions also ask about Ethereum network’s current usage and how’s it possible for the agency to inquire about Ether deposits.
An intriguing question, for example, is “How would the introduction of derivative contracts on ether potentially change or modify the incentive structures that underlie a proof-of-stake model?”
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