Ethereum has attracted considerable interest of the CFTC

The U.S. Commodity Futures Trading Commission (CFTC) wishes to learn more about one of the most popular cryptocurrencies – Ethereum (ETH). Let's try to figure out what caused such an interest from the regulator's side.

Ethereum is the second most discussed cryptocurrency right now. Ethereum proposes to provide a blockchain with an integral, fully fledged programming language that can be employed to create “smart contracts” that might be used to encode arbitrary state transition functions, allowing users to create any of the systems described above, along with many others that we have not yet imagined, simply by writing up the logic in a few lines of code.

In a request for input (RFI) that was published on Tuesday, 25 December, CFTC clarifies that it is looking for public assessment on various questions about Ethereum, starting from its technology, to how it can be used. Respondents will have 60 days from the RFI’s announcement date to submit their answers via email, mail or by hand delivery.

The press release states the CFTC expects that the information received will benefit its FinTech initiative (LabCFTC), and assist to shape the Commission’s knowledge of these crypto-technology.

The CFT will start to monitor Ethereum market along with any derivatives markets related to cryptocurrency.

The CFT said:

“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.”

The questionnaire consists of 25 various questions about Ether and the network, divided into the network’s objective, the technology behind it, its governance, markets and oversight, its cyber protection measures and custody. The inquires touch on different issues and issues being discussed, including scalability matters and how the system is being used particularly at present and how Ether deposits may be audited, etc.

Dear readers, keep reading our blog to stay abreast of all interesting and actual crypto news.