The Commodity Futures Trading Commission (CFTC) issued a Request for Information (RFI) for public commentary and feedback about Ethereum (ETH). The comission wants to gain more information in order to eventually approve Ethereum futures.
In a press release from yesterday, the CFTC writes that it “is seeking public comment and feedback in order to better inform the Commission’s understanding of the technology, mechanics, and markets for virtual currencies beyond Bitcoin, namely Ether and its use on the Ethereum Network. “
In line with the CFTC’s innovation-friendly stance, an RFI is one of several methods to ensure a fair regulation that does not slow down innovation. CFTC chairman J. Christopher Giancarlo is a crypto advocate. He recently stated that cryptocurrencies “have come to stay”.
“In a Request for Information (RFI) that will be published in the Federal Register, the CFTC is
asking forpublic feedback on a range of questions related to the underlying technology, opportunities, risks, mechanics, use cases, and markets, related to Ether and the Ethereum Network. All comments must be received within 60 days of publication in the Federal Register. The RFI also seeks to understand similarities and distinctions between Ether and Bitcoin, as well as Ether-specific opportunities, challenges, and risks.”
The announcement may be an indicator for the review of an ETH Futures trading system. Ethereum Futures contracts approved by the CFTC could have a significant impact on the Ether price. Ethereum was dethroned by Ripple (XRP) as the second largest cryptocurrency by market capitalization just recently.
Is Ethereum a security?
In June, Willia Hinman of the US Securities and Exchange Commission said that in its current form, Ethereum does not represent a security. Crypto enthusiasts were delighted, and Cboe Global Markets Inc. President Chris Concannon said the announcement eliminated “an important obstacle of Ethereum futures”.
On Tuesday however, The CFTC pointed out that it still has some open questions. Referring directly to Hinman, the commission stated that his remark conveyed only his personal views. The question of whether or not Ethereum is a security is still to be answered.