Could the regulation of cryptocurrencies be changing hands? A recent report suggests the incoming Trump administration might give the Commodity Futures Trading Commission (CFTC) more power over digital assets.
The CFTC Takes Center Stage?
For years, the Securities and Exchange Commission (SEC) has been the main regulator for crypto. However, many in the crypto industry felt the SEC’s approach was too restrictive, hindering growth. This could change under Trump. The plan is to significantly boost the CFTC’s role in overseeing the massive $3 trillion crypto market, potentially reducing the SEC’s influence.
A Friendlier Approach?
This shift could be a big deal. The SEC, under Gary Gensler, has been criticized for classifying most cryptocurrencies (except Bitcoin) as securities. This led to a “regulation-by-enforcement” strategy that didn’t sit well with many in the US crypto community. A Trump administration, known for its pro-crypto stance, might offer a different approach. A recent court ruling against the SEC’s broker-dealer rule further strengthens this possibility.
The CFTC’s expanded role might include regulating crypto exchanges and spot markets for commodities like Bitcoin and Ethereum. Former CFTC chair Chris Giancarlo, who’s reportedly being considered for a new “crypto czar” position, thinks the CFTC could jump right into regulating digital commodities from day one of a Trump presidency. This “crypto czar” would help shape crypto policy and might even oversee an industry advisory council.
Beyond Regulation: A Crypto-Friendly US?
Trump’s campaign aimed to make the US the “crypto capital of the world.” To achieve this, he’s appointing regulators who are generally positive about crypto. This optimism is spreading, with asset managers hoping for the approval of crypto exchange-traded funds (ETFs).
There’s even talk of a national Strategic Bitcoin Reserve (SBR) to combat inflation and economic uncertainty. This idea, supported by major players like BlackRock, is gaining traction globally, with similar proposals popping up in other countries like Brazil.
Bitcoin’s price is currently around $94,784.
