Trump Administration to Let CFTC Regulate Bitcoin and Ethereum Spot Market
The incoming Donald Trump administration is looking to shake things up in the world of cryptocurrency regulation. It’s been reported that the Commodity Futures Trading Commission (CFTC) might soon take on the responsibility of overseeing a big part of the cryptocurrency market, including spot markets for popular assets like Bitcoin and Ethereum. This move is part of a larger effort by the Trump team and the Republican-controlled Congress to reduce the regulatory power that the Securities and Exchange Commission (SEC) has had over the digital asset industry.
Some key players in the new administration believe that lighter regulation is key to fostering innovation in the cryptocurrency space. If this plan goes through, the CFTC, which oversees the U.S. derivatives market, would have authority over a market worth nearly $2.24 trillion for Bitcoin and Ethereum combined—accounting for over 70% of the global cryptocurrency market.
The CFTC has historically viewed digital assets like Ethereum as commodities, in contrast to the SEC’s more ambiguous stance on the matter. Bitcoin, on the other hand, has long been recognized as a commodity, offering it some protection from regulatory scrutiny.
While the CFTC has not confirmed this news, it’s an interesting development in the regulatory landscape surrounding digital assets. It comes at a time when Gary Gensler, the SEC chairman known for his strict approach to cryptocurrencies, has announced his resignation effective on Trump’s inauguration day. Stay tuned for more updates on this evolving situation.
