Reports indicate that President-elect Donald Trump’s new administration is considering a significant change in crypto regulation, potentially empowering the Commodity Futures Trading Commission (CFTC) to oversee certain digital assets.
According to Fox Business, the move could dilute the authority of the Securities and Exchange Commission (SEC) in the area of cryptocurrency regulation.
The CFTC could be tasked with regulating crypto exchanges and spot markets for digital assets classified as commodities, including well-known cryptocurrencies like Bitcoin and Ethereum. This change could reshape the regulatory landscape of the booming cryptocurrency market.
Outgoing SEC Chairman Gary Gensler has previously expressed support for the CFTC’s increased role, particularly regarding Bitcoin, which he has classified as a commodity.
This perspective aligns with a broader understanding within the industry that certain digital assets do not fall under the SEC’s jurisdiction.
In a March complaint filed against cryptocurrency exchange Kucoin, the CFTC identified Ethereum as a commodity, strengthening its position on the classification of digital assets. The potential change in regulatory authority comes amid ongoing discussions about how best to manage the rapidly evolving environment for cryptocurrencies.
Sources familiar with the matter suggest that the Trump administration wants to streamline oversight and create a more favorable regulatory framework for digital assets.
