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CFTC wants to learn about Ethereum Network’s smart contract feature, says Commissioner Dan Berkovitz




CFTC wants to learn about Ethereum Network's smart contract feature, says Commissioner Dan Berkovitz
Source: Unsplash

Dan Berkovitz, one of the Commissioners of Commodities Futures Trading Commission [CFTC], spoke about the Commission seeking public feedback on questions pertaining to Ethereum, in an interview with Block TV.

In mid-December 2018, the CFTC released an official statement on their portal, stating that a ‘Request for Information [RFI]’ will be published in the Federal Register. The request was made to seek more information on the Ethereum network, and its token, Ether.

The Commission asked questions about its underlying technology, risks, use-cases, mechanics, markets, and opportunities. Additionally, the Commission also wanted to know the similarities and differences between Bitcoin and Ethereum.

The Commissioner stated that they got “a very good response,” and that they would be moving ahead with it. The Commission received over thirty responses from the public, with some of the responses being “very detailed,” he added.

Berkovitz further added that the Commission sought such responses from the public owing to Ethereum’s potential to be listed as a futures contract or derivatives, like Bitcoin. He said,

“So, we wanted to learn more about the technology and the other feature of Ethereum, which is very much interesting to the agency and what we want to learn about is the smart contract feature thats on the Ethereum network. We want to learn about how does that potentially affect the futures contract in Ether and what’s the interaction.”

The commissioner further stated that this process was “really educational” for the commission, with people reaching out to the CFTC, seeking to develop this technology to fit within the regulatory sphere. Berkovitz added that this “would give us additional understanding and ability to deal with the technology.”

Berkovitz concluded by saying that he was “very impressed” with the quality and quantity of information received, primarily because this process was voluntary. He said,

“I’ve looked at some of the letters, they are very detailed and a lot of excellent information that frankly if one really wants to understand this technology a lot better one would really need to look at these letters, they are very detailed.”

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Priya is a full-time member of the reporting team at AMBCrypto. She is a finance major with one year of writing experience. She has not held any value in Bitcoin or other currencies.


Bitcoin Dominance Index [BDI] falls short of Bletchley Ethereum Token Index [BETI] in 2019

Biraajmaan Tamuly



Bitcoin Dominance Index [BDI] outperformed by Index based on the Ethereum blockchain in 2019
Source: Pixabay

One of the key factors which is often used to represent or indicate the potential of a particular cryptocurrency’s growth is its market capitalization. When the market capitalization of a coin or token showcases a positive hike, it usually has a positive impact on that particular asset’s market.

According to LongHash, the Bitcoin Dominance Index [BDI], which is used to measure Bitcoin’s market cap had been the dominant index since the beginning of 2019. It was observed that the BDI improved from 53 percent to 58 percent over the past few weeks after the largest crypto-asset underwent multiple price hikes.

XRP, which dominated Bitcoin by 1,600% back in 2017 on cryptocurrency exchange Bittrex in 2017, was currently down by almost 50% against Bitcoin in 2019. Ethereum [ETH] fared better comparatively, but was still down by 14% against the Bitcoin.

However, the Bletchley Ethereum Token, a token built on top of Ethereum, seemed to have outperformed Bitcoin this year.

The Bletchley Ethereum Token Index [BETI] can be utilized by investors for their allocation to tokens placed on top of the Ethereum blockchain. However, it should be noted that Ethereum is not a part of the index as it is an independent entity. The BETI is a weighted index, which means that the tokens with dominant market caps will take up a larger part of the index and the re-balance will take place at the end of a particular month.

For example, Tron [TRX] and Binance Coin [BNB] currently take up more than half of the BETI’s Weighted Index. Since the launch of their DEX, BNB has enjoyed a lucrative year with multiple hikes bringing the coin to $30 from under $6. Tron also witnessed major growth in market cap as it was up by 40% in comparison to the US dollar.

However, it is important to note that the major tokens on the BETI’s weighted index have all launched their own blockchain, at press time. Hence, it can indicate that the dominance enjoyed by BETI over the BDI over the last few months could point to a situation where the Ethereum blockchain was preferred for the launch of various tokens.

Despite the aforementioned reason, it is safe to state that Bitcoin was not the only entity which dominated the crypto-space this year.

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