WASHINGTON (Reuters) – The U.S. derivatives regulator on Tuesday said it was launching a formal consultation on the uses of ether as it aims to more closely scrutinize the virtual currency markets.
Representation of the Ethereum virtual currency standing on the PC motherboard is seen in this illustration picture, February 3, 2018. REUTERS/Dado Ruvic/Illustration
The Commodity Futures Trading Commission (CFTC) is one of several regulators, along with the U.S. Securities and Exchange Commission (SEC) and the U.S. Treasury, that is grappling with how best to oversee virtual currencies, which fall into a regulatory gray area.
Ether, powered by a blockchain technology called Ethereum, is among the top three largest cryptocurrencies by market cap alongside bitcoin and ripple.
Since early this year, officials at the CFTC and SEC have been discussing whether the cryptocurrency falls into traditional asset types, such as securities or commodities, and should therefore be subject to the relevant regulations.
The SEC has ruled that bitcoin is not a security but the CFTC says it is a commodity. Neither regulator has taken a position on ripple.
In May, CFTC commissioner Brian Quintenz called…
