For a while now, they’ve been speculations in the industry about the approval of Ethereum Futures. From the look of things, the CFTC may be considering approving Ethereum Futures as they recently requested for comments about the Ethereum blockchain. Putting out a Request for Information, the CFTC asked for public feedback about Ethereum and Ether. The goal is to better understand the Ethereum blockchain thus increasing its knowledge of cryptocurrencies other than Bitcoin.
Ethereum Futures Getting Approved?
In a December 11th press release, the CFTC stated that it needs those who know about the Ethereum blockchain to provide feedback about cryptocurrencies other than Bitcoin. Keep in mind that for many years now, Bitcoin has been the dominant topic of discussion. By requesting for other cryptocurrencies, the CFTC may be considering approving Ethereum Futures.
Those interested will have about 60 days to air their opinions after the RFI is published. Part of the announcement was as follows:
“In a Request for Information that the Federal Register will publish, the Commodities and Futures Trading Commission is asking the public to provide feedback about a range of questions that are related to the Ethereum. This includes things like use cases, opportunities, mechanics, risks, etc. It also seeks to understand the difference and similarities between Ethereum and Bitcoin. It also requested for Ethereum-specific risks, challenges and opportunities.”
The statement showed that all the information gathered during the exercise will be analyzed by the CFTC giving them a more accurate understanding of cryptocurrencies. This will help them set effective regulations that will meet the demand of the ever growing space. The information will also be used by LabCFTC. LabCFTC is the CFTC’s Fintech initiative that is aimed at bridging the gap between financial innovators and regulators.
Ethereum (ETH) Price Today – BTC / USD
While the announcement did not specifically state that CFTC is considering providing a framework for Ethereum Futures, it gives a perfect hint that something like that may be on the way. Bitcoin is the only cryptocurrency that has regulated futures trading option available. This is one thing that has helped it maintain its dominance in the industry. Financial giants are still capitalizating on this Bitcoin Futures trading. In November, Nasdaq announced that it is preparing to introduce a market dedicated strictly to Bitcoin futures trading.
What Will Ethereum Futures Mean For ETH?
With the price of ETH declining regularly, something like this is certainly going to have a positive impact on the price. It will also invite investors to the Ethereum blockchain. The network needs this kind of boost to succeed in the long run.
The Request for Information is one of the various methods the CFTC uses to get information from the public when necessary. Being properly informed prevents it from overreaching and hampering innovation. J Christopher Giancarlo, the Chairman of the CFTC has always been pro-crypto. Recently, he declared that cryptocurrencies are here to stay. Even if it may not upstage the USD, it isn’t going to go anywhere, anytime soon.
Ethereum (ETH) Price Analysis
At the time of writing, ETH was trading at $91.25. This shows that it was up by 1.41% against the USD and up by 0.46% against BTC. The 24-hour trading volume is $1,719,814,721 and the market capitalization is $9,467,261,035.