Catenaa, Wednesday, November 27, 2024-President-elect Donald Trump’s administration is reportedly planning to expand the Commodity Futures Trading Commission’s (CFTC) authority over digital assets while reducing the role of the Securities and Exchange Commission (SEC), according to sources cited by Fox Business.
The proposed changes would enable the CFTC to oversee crypto exchanges and spot markets for digital assets classified as commodities, such as Bitcoin and Ether.
This shift aims to streamline regulation in the burgeoning cryptocurrency sector.
Outgoing SEC Chair Gary Gensler, who has historically supported the CFTC’s authority over Bitcoin, will step down on January 20, 2025, the day of Trump’s inauguration.
The move is part of Trump’s broader initiative to enhance the US crypto industry, which includes establishing a federal Bitcoin reserve, appointing a dedicated crypto advisor to the White House, and fostering a regulatory environment conducive to digital assets.
The CFTC’s potential new mandate reflects ongoing debates over jurisdiction in the crypto space.
Earlier this year, the CFTC labeled Ether a commodity in a case against the crypto exchange KuCoin, further bolstering its regulatory claims.
Market observers note the proposed changes could significantly impact the cryptocurrency landscape, potentially reducing compliance burdens for crypto firms and accelerating adoption.
Trump’s pro-crypto stance contrasts sharply with Gensler’s stringent enforcement actions during his SEC tenure.
Trump’s incoming administration and key appointments signal a shift toward policies that favor innovation in digital finance, potentially reshaping the US’s role in the global crypto market.
