CFTC Could Lead Crypto Regulatory Revolution as Trump Administration Reshapes Jurisdiction

After years of positioning itself as the dominant regulatory force in the digital asset space, often at odds with crypto advocates, the Securities and Exchange Commission (SEC) is facing a significant shift in jurisdictional control .

Amid growing frustration with the agency’s combative approach, the incoming Trump administration is pushing to expand the powers of the Commodity Futures Trading Commission (CFTC), giving it jurisdiction over the $3 trillion crypto market .

More CFTC oversight

As Trump prepares to take office, the influence of the cryptocurrency industry within Republican politics could pave the way for an expanded role for the CFTC.

Sources familiar with FOX Business revealed that the Trump team’s plans suggest the agency could soon oversee spot markets for digital assets classified as commodities, such as Bitcoin and Ethereum, along with the platforms that enable the your negotiation

With more than 50 million people holding digital assets, key members of the incoming administration argue that lighter regulatory frameworks are essential to spur innovation in the space, particularly in the advancement of blockchain technology, which promises to streamline business operations by eliminating expensive middlemen.

In a statement to FOX Business, former CFTC Chairman Chris Giancarlo said:

“With adequate funding and under the right leadership, I believe the CFTC could begin regulating digital commodities on the first day of Donald Trump’s presidency.”

Ending the Crypto Turf War

No regulatory agency has explicit authority over these transactions. Rostin Behnam, the outgoing head of the CFTC, has repeatedly stated that most crypto assets are classified as commodities under existing rules. He also pointed to the ongoing regulatory battle with the SEC over control of the crypto industry.

So if Congress passes the proposal and the CFTC is tasked with overseeing the industry, it will end years of regulatory uncertainty and alleged SEC overreach.

The securities regulator, under President Biden, has come under fire for its stepped-up enforcement actions. In 2023 alone, 46 lawsuits were filed against crypto entities, a 53% increase from the previous year and the highest number since the agency began monitoring crypto in 2013, according to the data .

High-profile cases include complaints against Binance and Coinbase, where the SEC accuses them of conducting unregistered exchanges and violating securities regulations. There is also a lawsuit against Binance CEO Changpeng ‘CZ’ Zhao.

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