Summary:
Trump administration plans to extend CFTC's regulatory power over Bitcoin and Ethereum.
The move aims to scale back SEC's control over the cryptocurrency market.
CFTC jurisdiction could cover a $2.24 trillion market, impacting over 70% of global crypto.
Key figures advocate for less stringent regulations to foster innovation in cryptocurrency.
SEC Chair Gary Gensler's resignation aligns with the incoming administration's shift in crypto policy.
The incoming Donald Trump administration is reportedly planning to extend the regulatory power of the Commodity Futures Trading Commission (CFTC) to oversee a significant portion of the cryptocurrency market.
What Happened
The CFTC's role could soon expand to include the regulation of spot markets for major assets such as Bitcoin (BTC/USD) and Ethereum (ETH/USD), along with the exchanges that facilitate their trading. This information was reported by Fox Business, citing sources close to Trump’s team.
This proposed move is part of a broader effort by President-elect Trump and the Republican majorities in Congress to scale back the regulatory power the SEC has exerted over the digital asset industry under President Joe Biden and his outgoing SEC chairman, Gary Gensler.
Key figures in the incoming Trump administration believe that less stringent regulation is needed to spur innovation in the cryptocurrency business.
If implemented, the move would grant the CFTC jurisdiction over a nearly $2.24 trillion market for Bitcoin and Ethereum, which make up more than 70% of the global cryptocurrency market.
The CFTC didn’t immediately respond to requests for confirmation, and inquiries sent to Trump’s former campaign spokesman went unanswered.
Why It Matters
The CFTC has long considered digital assets like Ethereum as commodities, as stated by CFTC Chair Rostin Benham. This contrasts with the SEC’s ambiguous position on the asset. As for Bitcoin, it has long been recognized as a commodity, even by the SEC, which protects it from regulatory scrutiny.
The Trump transition team has also been considering the creation of a White House role dedicated to cryptocurrency policy, indicating a potential shift in the U.S. government's approach to digital assets.
This change in regulatory oversight comes as SEC Chair Gary Gensler, known for his stringent regulatory approach towards cryptocurrencies, announced his resignation effective from Trump’s inauguration day.
Image via Pixabay
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