Trump in considerations for CFTC to regulate crypto

The US president-elect’s administration is considering having the commodity trading authority take over crypto regulations.

The Commodity Futures Trading Commission (CFTC) is in Donald Trump’s sights to lead the burgeoning financial sector of cryptocurrency, after the exchange weighed in on the commission’s reign over the past few years.

The effort to transfer authority to the CFTC is seen as Trump and the Republican majority taking back jobs at the Securities and Exchange Commission (SEC), Fox Business reported Nov. 26.

If the concept is approved by Congress, the commission will have a key role in regulating digital assets as well as crypto-related products such as Bitcoin spot ETF and Ethereum spot ETF. It will also allow them to oversee the options market, which launched some crypto products earlier this month.

The newly elected President also wanted to bring an innovative environment to the digital asset that could create a better outlook for the industry as cryptocurrency is still considered a new financial market.

SEC role to be replaced by CFTC

The SEC, under Biden’s chairmanship, has received a lot of criticism from the crypto market for heavy-handed enforcement by courts and regulations. Last year, the commission indicted crypto-related entities up to 46 times; This figure increased by 53% compared to the previous year. This is also the highest number of cases since the commission oversaw crypto in 2013, according to a report from Cornerstone Research.

Crypto exchanges such as Binance and Coinbase are the main targets of SEC lawsuits, including Changpeng Zhao (CZ)’s lawsuits for operating illegal exchanges and violating securities law. Coinbase is also facing the same lawsuit under SEC Chairman Gary Gensler, calling it an unregistered exchange.

CFTC will play an important role in the growing sector with 50 million traders and a market size of 3 trillion dollars. The move will also allow the commission to regulate crypto exchanges, companies and individuals in certain markets.