Major Firms Detail To CFTC’s Request For Input On Ethereum

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Major_Firms-Detail-To-CFTC’s-Request-For-Input-On-Ethereum Major Firms Detail To CFTC’s Request For Input On EthereumIn late December 2018, the U.S. Commodity Futures Trading Commission’s (CFTC) issued its inquiry on Crypto asset mechanics, where many key Crypto and traditional finance firms have provided detailed comments on it. Blockchain consortium R3, Crypto exchange Coinbase, the non-profit Ethereum Foundation, Blockchain-driven tech firm ConsenSys, Crypto finance company Circle and among the companies have submitted their responses.

The CFTC published its inquiry, where the regulator’s LabCFTC initiative, mainly focused on fintech innovations, sought for public comments on the main principles of the Ethereum network. Its purpose was to understand similarities and differences between various Cryptocurrencies and the technology, mechanics, and markets for virtual currencies ahead of Bitcoin. The request typically focused on Ethereum, along with opportunities and risks related to its ecosystem. In its response, Managing Director at R3, Charlie Cooper provided some predictions over the evolution of digital assets this year, with saying that the asset-backed tokens like those that pegged to gold or real estate objects, along with local asset tokens, will shape the industry’s future. Chief Legal Officer at Circle, Gus P. Colebella reported that the Ethereum network that supports a range of digital assets can foster the value of global tokenization. Because, tokenization can make assets more reachable online and worldwide level, as the internet makes information transfer easier and obtainable.

As part of the response, Coinbase Chief Legal Officer Brian Brooks presented their view focused on the risks and regulations on the Ethereum space. As it was reported that Chicago-based ErisX earlier this month filed their comment to the CFTC’s request, the exchange deemed that the introduction of a regulated futures contract on Ethereum would affect the growth and maturation of the market.