The incoming Donald Trump administration is contemplating increasing the regulatory authority of the Commodity Futures Trading Commission (CFTC) to cowl the $3 trillion digital asset market. This potential transfer is a component of an initiative to reshape monetary rules within the U.S. beneath President-elect Trump. The determination might mark a serious shift in how the crypto market is regulated.
Donald Trump Administration Eyes CFTC To Oversee Digital Asset Regulation
According to a Fox Business report, Donald Trump’s administration is seeking to improve the regulatory attain of the CFTC by granting the company oversight of the rising digital asset market. The proposal would particularly goal digital belongings resembling Bitcoin and Ethereum, that are thought of commodities beneath present regulation. If the plan strikes ahead, the CFTC would acquire the authority to control the spot markets and exchanges.
Currently, the Commodity Futures Trading Commission oversees U.S. derivatives markets, together with futures and choices on commodities like oil and gold. However, the fee has not been chargeable for regulating the digital asset spot markets. This transfer will grant the regulatory physique new authority to implement guidelines and guarantee honest buying and selling practices.
The determination is a component of Donald Trump’s effort to scale back cryptocurrency regulatory burdens on the business whereas offering clearer oversight.
Challenges of Expanding CFTC Role in Crypto Regulation
However, the present price range of the CFTC is far smaller than that of the Securities and Exchange Commission (SEC). The Commodity Futures Trading Commission’s 2024 price range is roughly $400 million, in comparison with the SEC’s price range of $2.4 billion. This discrepancy is a problem to the company’s potential to supervise a $3 trillion market successfully.
In addition, the CFTC employs solely round 700 workers members, in comparison with the SEC’s 5,300 staff. This restricted capability might require further funding and sources if the fee is tasked with overseeing digital asset transactions.
Former CFTC Chair Chris Giancarlo helps stronger crypto regulation and backs the company’s expanded position. Giancarlo argued that the fee has been concerned in crypto markets since 2015, when it acknowledged Bitcoin as a commodity. Giancarlo has instructed that, with correct funding and management, the regulatory fee might regulate digital commodities.
Also often called “Crypto Dad” for his progressive stance on blockchain and digital currencies, Giancarlo is a frontrunner for the proposed White House crypto czar position beneath Donald Trump. The position will streamline crypto rules and promote blockchain growth.
Under Giancarlo’s management, the fee authorized the buying and selling of Bitcoin futures, additional cementing its position in overseeing the digital forex area.
In addition to overseeing the spot market, the regulatory physique would even have the authority to control crypto exchanges, that are important to the market.
Many within the crypto business have voiced frustration with the SEC’s method, which has led SEC chair Gary Gensler to announce his resignation on January 20, 2025. As a outcome, Donald Trump’s push for the CFTC to steer has garnered help from the crypto sector.
Ronny Mugendi
Ronny Mugendi is a seasoned crypto journalist with 4 years of skilled expertise, having contributed considerably to numerous media shops on cryptocurrency tendencies and applied sciences. With over 4000 revealed articles throughout varied media shops, he goals to tell, educate and introduce extra individuals to the Blockchain and DeFi world. Outside of his journalism profession, Ronny enjoys the joys of bike driving, exploring new trails and landscapes.
Disclaimer: The introduced content material might embody the private opinion of the writer and is topic to market situation. Do your market analysis earlier than investing in cryptocurrencies. The writer or the publication doesn’t maintain any accountability to your private monetary loss.
