The U.S. Commodity Futures Trading Commission (CFTC) is looking for community remark and response on the Ethereum Network as well as on Ether.
The CFTC is requesting a response on a variety of queries connected to the fundamental technology, occasions, tests, dangers, procedure, use cases, and marketplaces related to Ether and the Ethereum Network recently in a request for Information (RFI) that would be published in the Federal Register.
CFTC mentioned in a press release that it is delivering the appeal given Ether’s market share and possibly unique qualities comparative to Bitcoin. The RFI also pursues to know likenesses and differences between Bitcoin as well as Ether. The RFI file lists 25 different queries in regards to ether and the system. The Commission has given the public a time frame of two months to send their feedback.
As per CFTC, it supposes the explanations and info acknowledged will advantage LabCFTC, the CFTC’s FinTech inventiveness, and aid inform the Directive’s accepting of the developing technologies. The CFTC’s task is to substitute open, clearness, modest and monetarily sound unoriginal interchange markets, and stop bad practices, management and fraud regarding byproducts and other monetary products focused on the Commodity Exchange Act (CEA).
The Commission, however, emphasizes that (given the novel and evolving nature of the commodity and the underlying DLT) this “definition” should not be taken as definitive, nor arbitrary. As of September 2015, the CFTC maintains that “Bitcoin and other virtual currencies are encompassed in the definition and properly defined as commodities, and are therefore subject as a commodity to applicable provisions of the Act [CEA] and Regulations.”
In reality, the CFTC has by now trained those powers in many cases. In December 2017, the Commision issued summonses to Tether and Bitfinex (even however the matter of the examination is yet not apparent to the community, and in June 2018, it allegedly compelled Bitstamp, Coinbase, itBit, and Kraken as part of a market operation examination.
Rya Zobel Federal Judge had previously ruled that the U.S. byproducts regulator has the power to accuse deception and handling in the cryptocurrency space, CFTC Chairman Chris Giancarlo also assured on this. The circumstance includes My Big Coin Pay Inc. and a token named as my big coin (MBC). In her conclusion text, Zobel quoted three different cryptocurrency related instances such as the CFTC where cryptocurrencies are measured as commodities.
Following last week’s ruling, the CFTC announced:
Federal court finds that virtual currencies are commodities. Senior Judge Rya W. Zobel of the U.S. District Court for the District of Massachusetts entered an order holding that the Commodity Futures Trading Commission (CFTC) has the power to prosecute fraud involving virtual currency.
Currently, the cryptocurrency is at its lowermost level of $89.51 with a market cap of $9,459,936,052.