Trump plans to hand crypto regulation to CFTC
The proposed shift to the CFTC could foster innovation and redefine digital asset management in the US.
Donald Trump’s incoming administration is reportedly considering a significant shift in how cryptocurrency is regulated in the US. The Commodity Futures Trading Commission (CFTC) is being positioned to take over from the Securities and Exchange Commission (SEC) as the primary authority overseeing the digital asset sector. The move, if approved by Congress, would empower the CFTC to regulate crypto assets, exchanges, and emerging products like Bitcoin and Ethereum spot ETFs.
The SEC has faced criticism during Joe Biden’s presidency for its strict enforcement actions against crypto firms. In 2022 alone, the commission filed 46 lawsuits against crypto-related entities, a 53% increase from the previous year. Major exchanges like Binance and Coinbase were among the SEC’s primary targets, accused of operating unregistered platforms and breaching securities laws.
Trump’s plan is seen as an effort to create a more innovative and supportive environment for the cryptocurrency industry, which he views as a growing financial market with 50 million traders globally. By shifting oversight to the CFTC, the administration aims to promote development while ensuring proper regulation for the sector’s $3 trillion market size.
This proposed change marks a turning point in US crypto regulation, as the CFTC’s approach could redefine how digital assets are managed and potentially foster a more collaborative relationship with the industry.