Crypto oversight may shift to CFTC under Trump

-

It looks like the incoming Trump administration is planning a shake-up in how cryptocurrencies are regulated in the U.S., and reports suggest that the Commodity Futures Trading Commission might take over oversight of digital assets from the SEC.

SEC vs CFTC, who will win?

Per Fox Business, this potential shift would give the CFTC more power over the $3 trillion crypto market while reducing the SEC’s influence.

Under President Biden, SEC Chair Gary Gensler faced serious criticism for classifying most cryptocurrencies as securities, which created hurdles for the industry.

His regulation-by-enforcement strategy has been a tough pill to swallow for many in the crypto space.

Trump’s administration is looking to change that, wanting to create a more welcoming regulatory environment.

A new court ruling in Texas that overturned the SEC’s broker-dealer rule is adding fuel to this fire.

How comes the CFTC?

The plan reportedly includes giving the CFTC authority to regulate exchanges and spot markets for commodities like Bitcoin and Ethereum.

Former CFTC Chair Chris Giancarlo believes that with proper funding and leadership, the agency could start regulating digital commodities right away. He’s even in the running for a new crypto czar role that would help shape policy and lead an advisory council.

Trump’s campaign has painted a picture of the U.S. becoming the crypto capital of the world, with plans to appoint regulators who are friendly toward digital assets.

Asset managers like Bitwise and WisdomTree are eyeing this as a golden opportunity for getting crypto ETFs approved.

Plus, Trump’s team is exploring a Strategic Bitcoin Reserve to combat inflation and economic uncertainty, a concept backed by firms like BlackRock.

Global initiatives

This isn’t just happening in a vacuum, as other countries are getting in on the action too. For example, Brazil is considering a bill to create a national Bitcoin reserve to diversify its treasury holdings.

If Trump’s administration goes ahead with these plans, it could mark an important turning point for crypto regulation in the U.S., paving the way for more innovation and growth in the digital asset sector.

Have you read it yet? Tax exempt for crypto in Hong Kong?

LATEST POSTS

Chinese FTX creditors fight back for the payout

The FTX story just got a spicy new chapter, and it’s got more twists than a mob movie plot. Picture this, over 300 Chinese creditors,...

Pump.fun Acquires Kolscan to Add Wallet Tracking Ahead of $1B PUMP Token ICO

Pump.fun has acquired Kolscan, a wallet-tracking platform, ahead of its $1 billion PUMP token ICO scheduled for Saturday. The announcement came on July 11, marking...

Circle’s stock bounces back 14%, but why?

Circle’s CRCL stock took a textbook nosedive, dropping a brutal 42% from nearly $299 to $171.50 since late June. That kind of fall makes you...

Tether will go from stablecoins to Bitcoin mining kingpin by the end of the year?

Tether will be the largest Bitcoin miner by the end of the year. With the U.S. government tightening the screws through the new GENIUS Act,...

Most Popular

Guest posts