Trump Administration to Transfer Crypto Regulation to CFTC
The incoming Trump administration is allegedly planning to make significant changes to cryptocurrency regulation in the United States. This potential move would involve transferring a significant amount of authority from the Securities and Exchange Commission (SEC) to the Commodity Futures Trading Commission (CFTC).
This would mark a notable shift from the SEC’s historically strict stance on digital currencies. According to reports from Fox Business, the Trump team plans to give the CFTC the power to oversee exchanges and spot markets for digital assets like Bitcoin and Ether, which are classified as commodities.
This is in line with statements made by outgoing SEC Chair Gary Gensler, who has been a strong advocate for considering Bitcoin as a commodity.
Gensler, famous for his tough approach towards crypto, has announced his resignation effective January 20, 2025, the same day as President-elect Trump’s inauguration. Gensler’s departure signifies the end of a contentious era for crypto at the SEC. During his tenure, there were many enforcement actions and a focus on defining regulatory boundaries for digital assets.
While his efforts for stricter oversight were praised by consumer advocates, they also faced opposition from industry leaders and policymakers who believed in a more balanced approach.
