To see how a tide turns in cryptocurrencies, one needs to see how big players or influencers in the industry or outside react towards it. Earlier this year, the Securities and Exchange Commission (SEC) had asked for public comments on bitcoin Exchange Traded Funds (ETFs).
Now, the Commodity Futures Trading Commission (CFTC) has sought public opinion to better understand blockchain technology, as well as cryptocurrencies bitcoin, ether and ethereum network. According to an official press release, the regulatory body will soon put out Request for Information which will be published on the Federal Register. The form will include numerous questions such as the blockchain 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 feedback received from the public will help the CFTC’s LabCFTC, which is chiefly the FinTech initiative, and help to inform the Commission’s understanding of these emerging technologies.
Last month, LabCFTC had published a primer on smart contracts to clarify their real functions. At the time, LabCFTC Director Daniel Gorfine had stated, “Smart contracts are being used to drive further automation in our markets and may have an impact across a range of economic activities. This primer is focused on explaining smart contracts, exploring how they may impact our markets and highlighting potentially novel risks and challenges.” The primer while defining what smart contracts are, also reminds potential investors of both- benefits and risks.”
Discussing the pros and cons of smart contracts, the primer had also added, “As with other areas of innovation, while there are many potential benefits, it is also critical to understand and mitigate risks and challenges; the primer accordingly works through a range of operational, technical, cybersecurity, fraud and manipulation, and governance risks and challenges. The primer goes on to speak to the CFTC’s role to protect market users and their funds, consumers, and the public.”
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