According to A Report The incoming Donald Trump administration may empower the Commodity Futures Trading Commission (CFTC) to regulate certain crypto assets, Fox Business reported, citing sources familiar with the matter.
The SEC’s crypto loss is the CFTC’s gain
With nearly two months to go before Trump takes office as US president, the incoming Republican administration is already making strides towards fulfilling campaign promises, including creating a favorable regulatory framework for digital assets.
The Trump administration is expected to significantly expand the CFTC’s role in overseeing the $3 trillion digital asset industry. The move could potentially reduce the Securities and Exchange Commission’s (SEC) jurisdiction over cryptocurrencies.
outgoing SEC Chair Gary Gensler has often faced criticism for stifling the growth of the digital asset sector by classifying most cryptocurrencies — other than Bitcoin (BTC) — as securities. The SEC’s controversial “rule-by-rule” approach has created the agency Unpopular Among the participants of the US crypto industry.
With the end of the Biden administration, pro-crypto Trump’s impending presidency signals a possible shift in Washington’s stance on digital assets. A fresh one the ruler A Texas court has dealt a blow to the SEC by overturning its controversial broker-dealer rule.
Sources suggest that the CFTC’s expanded role could include regulating digital asset exchanges and spot markets for cryptocurrencies classified as commodities, such as BTC and Ethereum (ETH). Commenting on the matter, former CFTC Chair Chris Giancarlo said:
With adequate funding and the right leadership, I think the CFTC could hit the ground running to begin regulating digital commodities on day one of Donald Trump’s presidency.
It is worth highlighting that Giancarlo is happening Admittedly For “Crypto Czar” status under the Trump administration. According to the report, the new role is expected to “help implement crypto policy and potentially oversee an industry-led advisory council.”
Broad digital asset changes are expected under the Trump presidency
In addition to issues like immigration and trade tariffs, Trump’s campaign also focused on positioning the US as the “crypto capital of the world.” To support this view, the president-elect appointment Regulators with moderate to positive views on digital assets.
Asset managers love it bitwise And The Wisdom Tree There is optimism that renewed interest in the digital asset 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 may have a transition team create A National Strategic Bitcoin Reserve (SBR) to deal with inflationary pressures and macroeconomic uncertainties. The idea is acquired Support from asset managers like BlackRock.
Interestingly, similar efforts are underway globally. Brazilian Federal Deputy Eros Biondini recently presented A bill to establish a national BTC reserve, aimed at diversifying the country’s treasury reserves. BTC trades at $94,784 at press time, up 1.4% in the past 24 hours.
Featured image from Unsplash.com, Chart from TradingView.com
