The Commodity Futures Trading Commission (CFTC) could oversee a substantial portion of the $3 trillion digital asset market once President-elect Donald Trump takes office next year.
Citing sources with direct knowledge of the Trump team’s thinking, Fox Business reports that the new administration is considering expanding the CFTC’s power to include a spot market regulator for crypto assets considered to be commodities such as Bitcoin (BTC) and Ethereum (ETH).
The regulator will also give the CFTC a monitoring function over exchanges that facilitate the trading of these assets.
According to former CFTC Chairman Chris Giancarlo, who is considered the “crypto czar” in the second Trump administration,
“With adequate funding and under proper leadership, I believe the CFTC could be on its way to begin regulating digital products on day one of Donald Trump’s presidency.”
To date, no regulatory body has clear jurisdiction over transactions in the Bitcoin and Ethereum spot markets. The idea of placing responsibility on the CFTC should bring regulatory clarity to those involved in trading the two largest cryptocurrencies by market capitalization.
The report states that the plan involves restructuring the relationship between the U.S. Securities and Exchange Commission (SEC) and the CFTC so that the two top financial regulators can work together on certain crypto policies such as those involving stablecoins.
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