According to A a report According to Fox Business, citing sources familiar with the matter, the incoming Donald Trump administration may empower the Commodity Futures Trading Commission (CFTC) to regulate certain crypto assets.
Cryptocurrencies’ loss for the SEC is a gain for the CFTC
With nearly two months remaining before Trump assumes the presidency of the United States, the incoming Republican administration is already making strides toward fulfilling campaign promises, including creating an appropriate regulatory framework for digital assets.
The Trump administration is expected to significantly expand the CFTC’s role in overseeing the $3 trillion digital assets industry. The move will likely reduce the SEC’s jurisdiction over cryptocurrencies.
Outgoing SEC Chairman Gary Gensler has often faced criticism for stifling the growth of the digital assets sector by classifying most cryptocurrencies — with the exception of Bitcoin (BTC) — as securities. The SEC’s controversial “regulation by enforcement” approach has made the agency… Unpopular Among participants in the cryptocurrency industry in the United States.
With the Biden administration over, Trump’s incoming pro-crypto presidency signals a potential shift in Washington’s stance on digital assets. Modern to rule A Texas court has dealt a blow to the Securities and Exchange Commission by striking down a controversial broker-dealer rule.
Sources indicate that the CFTC’s expanded role may include regulating digital asset exchanges and spot markets for cryptocurrencies classified as commodities, such as BTC and Ethereum (ETH). Commenting on the matter, Chris Giancarlo, former head of the Commodity Futures Trading Commission (CFTC), said:
With adequate funding and under the right leadership, I believe the CFTC can hit the ground running to begin regulating digital commodities on day one of Donald Trump’s presidency.
It is worth noting that Giancarlo is being It is considered For the mysterious “crypto czar” position under the Trump administration. According to the report, the new role is expected to help “implement cryptocurrency policy and possibly oversee an industry-led advisory board.”
Sweeping changes to digital assets are expected under a Trump presidency
Aside from issues like immigration and trade tariffs, the Trump campaign has also focused on making the United States the “crypto capital of the world.” To support this vision, the President-elect is hiring Regulators have moderate to positive views on digital assets.
Asset managers such as Bitwise and Tree of wisdom We are optimistic that renewed interest in the digital assets industry could lead to the approval of exchange-traded funds (ETFs) for virtual assets such as XRP and Solana (SOL).
Recent reports suggest that Trump’s transition team may do so creates A national Bitcoin Strategic Reserve (SBR) to address inflationary pressures and macroeconomic uncertainties. She has the idea acquired Support from asset managers such as BlackRock.
Interestingly, similar efforts are underway globally. Brazilian federal representative Eros Biondini recently foot A draft law to create a national reserve for Bitcoin, aimed at diversifying the country’s treasury holdings. Bitcoin is trading at $94,784 at press time, up 1.4% in the past 24 hours.
Featured image from Unsplash.com, chart from TradingView.com