The U.S. president-elect’s government is considering transferring control of cryptocurrency to the CFTC (Commodity Futures Trading Commission)
Donald Trump wants the Commodity Futures Trading Commission (CFTC) to oversee the nascent cryptocurrency market, following the exchange commission’s consideration of the previous few years before making a decision.
Fox Business reported on November 26 that Trump and the Republican majority interpreted the attempt to transfer authority to the CFTC as a drive to eliminate the Securities and Exchange Commission’s (SEC) positions.
The commission will significantly regulate digital assets and crypto-related products like Ethereum spot ETFs and Bitcoin spot ETFs if Congress approves the idea. Additionally, it will allow them to monitor the options market, which introduced a few cryptocurrency products earlier this month.
Since cryptocurrency is still considered a relatively young financial market, the newly elected president aims to foster innovation in digital assets, potentially improving the industry’s outlook.
Also, Trump wants to appoint former CFTC Chair Giancarlo as “Crypto Czar.” The CFTC will take the place of the SEC.
The crypto market has been critical of the SEC under Biden’s presidency because of the strict enforcement of rules and courts. The commission accused crypto-related firms up to 46 times last year, a 53% rise from the year before. According to a Cornerstone Research analysis, this represents the highest level of litigation since the commission started monitoring cryptocurrency in 2013.
SEC lawsuits, like the Changpeng Zhao (CZ) proceedings, primarily target cryptocurrency exchanges like Binance and Coinbase for operating illegal exchanges and violating securities laws. SEC Chairman Gary Gensler also sues Coinbase for operating as an unlicensed exchange.
However, with 50 million traders and a $3 trillion market, the CFTC will be a significant player in the expanding business. Additionally, the action would give the commission the authority to control cryptocurrency exchanges, businesses, and people in particular markets.
