Key Insights
- President-elect Donald Trump’s administration is considering expanding the CFTC’s regulatory authority to oversee crypto exchanges and spot markets for commodities like bitcoin and ether.
- The proposed changes would potentially reduce the SEC’s current regulatory power in the cryptocurrency industry, coinciding with Gary Gensler’s planned resignation on January 20, 2025.
WASHINGTON (MarketsXplora) – President-elect Donald Trump’s incoming administration is considering granting the Commodity Futures Trading Commission (CFTC) expanded regulatory authority over digital assets, potentially reshaping the cryptocurrency oversight landscape.
According to sources familiar with the matter, the proposed changes would empower the CFTC to regulate crypto exchanges and spot markets for digital assets classified as commodities, including bitcoin and ether. This development could significantly reduce the Securities and Exchange Commission’s (SEC) current regulatory influence in the crypto industry.
The potential shift aligns with outgoing SEC Chair Gary Gensler’s own previous stance, as he had supported the CFTC’s role in regulating bitcoin, which he consistently characterized as a commodity. In March, the CFTC reinforced this perspective by labeling ether a commodity in a complaint against crypto exchange Kucoin.
Trump has pledged comprehensive support for the U.S. crypto sector, with ambitious proposals including establishing a federal bitcoin reserve and creating the first-ever White House crypto-specific role. Notably, his plans include removing Gensler, who has been widely perceived as maintaining a stringent approach to cryptocurrency regulation.
Gensler’s departure is set for January 20, 2025 – coinciding with Trump’s inauguration as the 47th U.S. president – after announcing his resignation last week.
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