Reports indicate that President-elect Donald Trump’s incoming administration is considering a significant shift in crypto regulation.
Reports indicate that President-elect Donald Trump’s incoming administration is considering a significant shift in crypto regulation, potentially empowering the Commodity Futures Trading Commission (CFTC) to oversee certain digital assets.
According to Fox Business, this move could dilute the authority of the Securities and Exchange Commission (SEC) in the realm of cryptocurrency regulation.
The CFTC may be tasked with regulating crypto exchanges and spot markets for digital assets classified as commodities, including well-known cryptocurrencies like Bitcoin and Ethereum. This change could reshape the regulatory landscape for the burgeoning cryptocurrency market.
Outgoing SEC Chair Gary Gensler has previously expressed support for the CFTC's increased role, particularly regarding Bitcoin, which he has classified as a commodity.
This perspective aligns with a broader understanding within the industry that certain digital assets do not fall under the SEC's jurisdiction.
In a March complaint against the crypto exchange Kucoin, the CFTC identified Ethereum as a commodity, further solidifying its stance on the classification of digital assets. The potential shift in regulatory authority comes amidst ongoing discussions about how best to manage the rapidly evolving cryptocurrency environment.
Sources familiar with the matter suggest that the Trump administration is keen to streamline oversight and create a more favorable regulatory framework for digital assets.
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