The United States Commodity Futures Trading Commission (CFTC) is ready to accept proposals for Ethereum contract futures provided all the necessary requirements are met, according to a senior official of the agency.
CFTC Could Approve Ethereum Futures
A senior official of the CFTC told Coindesk yesterday, May 6 that the agency is willing to accept Ethereum contract futures if the proposals meet all the needed requirements. The agency which monitors the derivatives market in the US has already allowed the launch of Bitcoin futures by CME Group and the CBOE back in 2017.
Following the success of Bitcoin futures, regulators are now open to approving similar services for the second largest cryptocurrency. The senior official who spoke under anonymous conditions revealed that the CFTC is comfortable with an ether derivative being launched under their jurisdiction.
The official added that once a derivative exchange comes to them with a proposal that ticks all the boxes, then there is a good chance that the CFTC would self-certify the futures. However, the CFTC only responds to applications submitted for derivatives future and doesn’t recommend exchanges to launch the service, the official noted.
The price of Ethereum has been on the rise over the past few hours as the news of a possible Ethereum contracts future blazed through the cryptocurrency space. ETH is leading the market rally and is up by roughly 10 percent over the last 24 hours.
Ethereum dApp Transactions Achieve a New All-Time High
There have been several reports suggesting that Ethereum is losing its market share in the decentralized applications (dApps) to EOS, Tron, and others. However, the smart contract platform recorded a new all-time high in terms of dApp transactions last month.
A report published by analytics firm Diar showed that the dApp transaction volume recorded on the Ethereum network last month set a new record, surpassing the highs experienced in December 2018.
According to the report, the April high resulted in 776,000 Ether sent on-chain via dApps, and it is the result of a growth trend that started since the beginning of the year. The majority of those transactions took place via decentralized exchanges (DEX), the report added, with a total of $132 million worth of tokens transacted via dApps. Diar points out that this trend is an indication that Ethereum is still very strong in the decentralized applications space despite challenges from rival platforms.
Ethereum Developers Still Working on Proof of Stake Migration
The world’s second largest cryptocurrency by market cap makes use of the proof of work protocol. However, the developers led by co-founder Vitalik Buterin have been working on migrating to a proof of stake (PoS) protocol.
While speaking at the Token2049 event in Hong Kong a few weeks ago, Buterin assured the Ethereum community that they are working on migrating to a PoS protocol. The first phase of the movement would come with the implementation of phase zero.
This phase is also known as Beacon Chain will allow validators instead of miners to follow up on ETH and make suggestions regarding network upgrades. Once the phase zero is achieved, Ethereum would move on to the other stages, one and two.
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Hassan is a cryptocurrency and stock market writer and enthusiast. The financial world has become his primary interest, with movies and books being some of his favourite pastime activities. He is an investor in many blockchain projects including Bitcoin, Stellar Lumens, Cardano, VeChain, Gifto, and Cindicator. Hassan also writes for important outlets like Blokt.com