The new Trump administration is reportedly considering a major overhaul of cryptocurrency regulation in the United States, with the goal of shifting significant authority from the Securities and Exchange Commission (SEC) to the Commodity Futures Trading Commission (CFTC). This potential change would mark a notable departure from the SEC’s historically aggressive stance on digital assets.
According to reports from Fox BusinessThe Trump team plans to empower the CFTC to oversee cryptocurrency exchanges and spot markets for digital assets considered commodities, such as Bitcoin and Ether. The move aligns with statements made by outgoing SEC Chairman Gary Gensler, who has long advocated for Bitcoin to be classified as a commodity.
Gensler, known for his strict approach towards crypto, announced his resignation effective January 20, 2025, coinciding with the inauguration of President-elect Trump. Gensler’s departure marks the end of a controversial era for crypto at the SEC. His tenure was marked by numerous enforcement measures and a focus on defining regulatory limits for digital assets. While its push for stricter oversight drew praise from consumer advocates, it also faced significant backlash from industry executives and policymakers who advocated greater more balanced approach.
Gensler officially announces his resignation from the SEC, Crypto rejoices
Gary Gensler will leave the SEC on January 20, 2025, in accordance with Trump’s inauguration.
The CFTC, a new cryptocurrency regulator?
The proposed regulatory change would grant the CFTC greater authority over the crypto sector, potentially positioning it as the primary overseer of certain types of digital assets. The move would dilute the influence of the SEC, which has been criticized for its heavy-handed enforcement strategy under Gensler’s leadership.
Recent actions strengthen the CFTC’s position on cryptocurrencies. In March 2024, the agency identified Ether as a commodity in a lawsuit against KuCoin. If the Trump administration moves forward, this classification could solidify the CFTC’s role in regulating major cryptocurrencies and associated markets, and its more commodity-friendly approach would foster innovation and attract investment, especially for assets like Bitcoin and Ether.
Trump’s pro-crypto agenda
President-elect Trump’s administration has announced a more pro-crypto stance, with proposals aimed at boosting the sector’s growth and its integration into traditional financial systems.
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Key elements of this program include a Bitcoin Federal Reserve, a crypto-specific White House role, and simplified regulation regarding digital assets.
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