In a drastic move, Donald Trump’s administration is considering moving regulatory authority over the $3 trillion crypto market to the Commodity Futures Trading Commission. The proposal focuses on Bitcoin and Ethereum, with the aim of simplifying rules and improving oversight.
Potential CFTC Oversight of Bitcoin and Ethereum
Fox Business reports that the Trump administration is attempting to expand the CFTC’s regulatory authority by giving it control of the booming digital asset market.
Since cryptocurrencies like Bitcoin and Ethereum are already considered commodities by law, this plan would target them directly. If all goes according to plan, the Commodity Futures Trading Commission will be able to oversee spot markets and exchanges.
Futures and options markets for commodities such as gold and oil are currently regulated by the Commodity Futures Trading Commission in the United States. But overseeing digital asset spot markets is not the task of the commission. This change will give the regulator more power to make sure everyone follows the rules and businesses are fair.
Trump’s push for simplified crypto regulation
This decision is in line with President Trump’s agenda to ease regulations on cryptocurrencies while strengthening oversight of the sector, Coingape points out.
But compared to that of the Securities and Exchange Commission (SEC), the CFTC’s current budget is significantly lower. Unlike the SEC’s $2.4 billion, the CFTC’s budget for 2024 is around $400 million. This inconsistency makes it harder for the government to keep tabs on a $3 trillion market.
Additionally, 5,300 people work for the SEC, while the CFTC has only 700. In order to resolve this capacity issue, the commission may need more resources and money if it is given responsibility to monitor transactions involving digital assets.
Chris Giancarlo pleads for CFTC leadership
Stricter crypto regulation and the agency’s expanded role are causes championed by former CFTC Chairman Chris Giancarlo. According to Giancarlo, the commission’s involvement in the cryptocurrency market dates back to 2015, when it officially recognized Bitcoin as a commodity.
Giancarlo proposed that the regulator could oversee digital products if it has enough resources and guidance.
One of the leading contenders for White House crypto czar under Donald Trump is Giancarlo, nicknamed “Crypto Dad” due to his liberal views on blockchain technology and digital currency. This position will encourage the development of blockchain and simplify crypto rules.
The commission’s approval of Bitcoin futures trading under Giancarlo’s leadership solidified its place as a regulator of the cryptocurrency industry.
Industry Support for CFTC Grows Amid SEC Criticism
Crypto exchanges are vital to the market and the regulator would have the power to oversee them as well as the spot market.
On January 20, 2025, SEC Director Gary Gensler announced his resignation in response to the many voices in the crypto industry expressing their displeasure with the agency’s stance. Therefore, the cryptocurrency industry has rallied behind Donald Trump’s call for the CFTC to take the lead.
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