Trump Administration Plans to Transfer Crypto Regulation to CFTC
The incoming Donald Trump administration may transfer crypto regulation from the Securities and Exchange Commission (SEC) to the Commodity Futures Trading Commission (CFTC), as reported by Fox Business. This shift could enhance the CFTC's authority over the $3 trillion digital asset market while diminishing the SEC's influence.
Under the Biden administration, SEC Chair Gary Gensler faced criticism for categorizing most cryptocurrencies, excluding Bitcoin, as securities, which created obstacles for the industry. His “regulation-by-enforcement” strategy has been unpopular among crypto stakeholders. Trump's presidency suggests a potential policy shift toward a more crypto-friendly regulatory framework. A recent Texas court ruling that overturned the SEC’s broker-dealer rule further supports this momentum for change.
The Trump administration is expected to grant the CFTC broader powers to oversee digital assets, including the regulation of exchanges and spot markets for commodities such as Bitcoin and Ethereum. Former CFTC Chair Chris Giancarlo indicated that the agency could “start regulating digital commodities from day one” with proper funding and leadership. Giancarlo is also a candidate for a new “crypto czar” role, responsible for shaping policy and leading an advisory council.
Trump’s campaign aims to position the U.S. as a potential “crypto capital of the world”, intending to appoint regulators favorable to digital assets. Asset managers like Bitwise and WisdomTree view this as a chance for cryptocurrency exchange-traded funds (ETFs) to gain approval. Additionally, Trump's transition team is considering a Strategic Bitcoin Reserve (SBR) to combat inflation and economic uncertainty, an initiative backed by firms such as BlackRock.
Globally, similar initiatives are emerging. In Brazil, a proposed bill seeks to create a national Bitcoin reserve to diversify treasury holdings. The Trump administration could represent a significant turning point for cryptocurrency regulation, fostering a more supportive environment for innovation and growth in the digital asset sector.