CFTC Wants to Learn More About Ether (ETH) and Its Use on the Ethereum Network

On Tuesday (11 December 2018), the U.S. Commodity Futures Trading Commission (CFTC) issued a "Request for Input" (RFI) on "Crypto-asset Mechanics and Markets". More specifically, the CFTC 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."

According to its press release, the CFTC is expecting that these comments, all of which must be received by 60 days from the date of publication of the RFI in the Federal Register, "will benefit LabCFTC, the CFTC’s FinTech initiative, and help to inform the Commission’s understanding of these emerging technologies." The Commission says that it wants this public feedback for advancement of oversight of the commodity futures markets and for regulatory policy development. It also says that the feedback 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." Comments may be submitted via the CFTC website, regular mail, or hand/courier delivery.

In addition to general feedback, the CFTC is hoping for answers to 25 questions across the following categories:

  • "Purpose and Functionality"
  • "Technology"
  • "Governance"
  • "Markets, Oversight and Regulation"
  • "Cyber Security and Custody"

Here are a few of the more interesting questions:

"Are there any existing or developing commercial enterprises that are using Ether to power economic transactions? If so, how is Ether recorded for accounting purposes in a comprehensive set of financial statements?"

"Does the Ethereum Network face scalability challenges? If so, please describe such challenges and any potential solutions. What analyses or data sources could be used to assess concerns regarding the scalability of the underlying Ethereum Network, and in particular, concerns about the network’s ability to support the growth and adoption of additional smart contracts?"

"Relative to a proof of work consensus mechanism does proof of stake have particular vulnerabilities, challenges, or features that make it prone to manipulation? In responding consider, for example, that under a proof of stake consensus mechanism, the chance of validating a block may be proportional to staked wealth."

"How would the introduction of derivative contracts on Ether potentially change or modify the incentive structures that underlie a proof of stake consensus model?"

The following question is especially interesting (see if you can spot anything wrong with the question):

"In light of Ether’s origins as an outgrowth from the Ethereum Classic blockchain, are there potential issues that could make Ether’s underlying blockchain vulnerable to future hard forks or splintering?"

 

Featured Image Credit: Photo via Pexels.com

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Gemini CEO Tyler Winklevoss Says That ‘Next Stop’ for Bitcoin Is ‘The Moon’

Siamak Masnavi

On Thursday (February 13), Tyler Winklevoss, who is Co-Founder and CEO of digital asset exchange Gemini, as well as Principal at New York-based family office Winklevoss Capital, was so excited about Bitcoin managing to stay above the $10K level that he tweeted his prediction for Bitcoin's next stop — "the moon":

What he was referring to is the fact that the Bitcoin price has stayed above the $10K level since around 15:00 UTC on Tuesday (February 11):

BTC-USD 2 Week Chart on 14 Feb 2020.png

Both Tyler and his brother Cameron, of course, have long been very bullish on crypto in general and Bitcoin, which they see as a much better alternative to gold as a "store of value", in particular.

The aforementioned tweet is not the only time this year that Tyler has made a bullish comment about Bitcoin. For example, later in the same day (February 13), after he found via a CNBC report that "Tesla plans a $2 billion common stock offering," here is the tweet he posted in response:

He later explained this comment—after someone pointed out that new bitcoin is generated all the time as the result of work by miners—by saying that he meant that the Bitcoin network does not issue in "an unpredictable, capricious manner." 

Another person with a crypto exchange background who finds the crossing of the $10,000 level significant for Bitcoin is Balaji S. Srinivasan, a former CTO of Coinbase:

According to data from CryptoCompare, at press time (12:30 UTC), Bitcoin is trading at $10,245, up 0.69% in the past 24-hour period:

BTC-USD 24 Hour Chart on 14 Feb 2020.png

Bitcoin, which currently has a market cap of $186.60 billion, has had an impressive run so far in 2020, having made a gain (against USD) of +42.45%. 

Featured Image by "rkarkowski" via Pixabay.com