- The Donald Trump administration is considering granting the CFTC authority to oversee crypto regulations.
- The CFTC’s regulatory landscape operates the $20 trillion U.S. derivatives market.
President-elect Donald Trump’s forthcoming administration plans to reshape the regulatory framework for cryptocurrencies in the United States by granting the Commodity Futures Trading Commission (CFTC) authority over digital assets, including Bitcoin and Ethereum.
If Congress approves, the CFTC’s expanded role will regulate the spot markets for digital commodities and oversee the crypto exchanges. This remarkably contrasts with the SEC’s stricter approach. While the CFTC tends to adopt a liberal regulation due to its focus on institutional markets.
Former CFTC Chairman Chris Giancarlo has expressed his confidence in the commission’s ability to manage this expanded authorization and stated:
“With adequate funding and under the right leadership, I think the CFTC could hit the ground running to begin regulating digital commodities on day one of Donald Trump’s presidency.”
Moreover, the CFTC’s current regulatory landscape notably operates the $20 trillion U.S. derivatives market with a fraction of the SEC’s budget and personnel. The expanded role will require increased resources to ensure effective oversight.
Besides, the regulatory axis is expected to elevate confidence in the crypto market among institutional investors. It provides an explicit framework for digital asset regulation. The proposed changes aim to better understand and reinforce innovation within the $3 trillion digital asset market with 50 million traders.
It should be emphasized that this initiative aligns with Donald Trump’s pro-crypto stance. It includes plans for a federal Bitcoin reserve and firing Gary Gensler. Recently, Gensler announced his plan to resign as the SEC Chair on January 20, 2025.
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