The post CFTC to potentially lead digital asset regulation under Trump administration appeared on BitcoinEthereumNews.com.

The Trump administration is planning to expand the Commodity Futures Trading Commission’s (CFTC) authority to oversee significant portions of the $3 trillion digital asset market, Fox Business reported on Nov. 28. The move would mark a pivotal shift in US crypto regulation, aiming to replace the current enforcement-heavy approach with a more innovation-friendly framework. CFTC to regulate crypto The proposal would assign the CFTC oversight of spot markets for digital commodities, including Bitcoin and Ethereum, which account for about 70% of the global crypto market. The plan also includes regulating the exchanges where these assets are traded. Currently, no single federal agency has clear jurisdiction over spot crypto transactions, leading to regulatory uncertainty. Supporters argue that the CFTC’s expertise in derivatives markets makes it well-suited to oversee digital commodities. The agency is known for its lighter regulatory touch compared to the Securities and Exchange Commission (SEC), which has faced criticism for its stringent policies under outgoing Chair Gary Gensler. Former CFTC Chairman Chris Giancarlo, a key advocate for clearer crypto regulations, highlighted the agency’s readiness to take on the expanded role. Giancarlo told Fox Business: “With adequate funding and under the right leadership, the CFTC could begin regulating digital commodities effectively from day one.” The plan comes as part of President-elect Donald Trump’s broader effort to restructure US financial regulation. Republican lawmakers have long criticized the SEC’s aggressive stance on digital assets, which included labeling most cryptocurrencies as securities. Under Gensler, the SEC’s enforcement actions created friction with the crypto industry, pushing many participants to favor the CFTC as a primary regulator. In response, Trump’s administration seeks to overhaul the SEC’s leadership and operations, potentially steering the agency toward a more pro-innovation agenda. Funding and legislative Hurdles For the CFTC to regulate spot crypto markets, Congressional approval, and increased funding…

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Filed under: News - @ November 28, 2024 8:21 pm