Trump Administration to Empower CFTC in Crypto Regulation Shift

• Trump to expand CFTC’s jurisdiction.
• The crypto industry was at odds with the SEC. 
• Move hopes to give regulatory clarity.

The recent election victory of Donald Trump has prompted a major bull market. However, regulatory clarity remains a top issue for crypto firms and investors in the US. To address these concerns, Trump’s team already signaled several crypto-friendly moves. 

Most recently, reports suggested that Trump’s administration could give the Commodity Futures Trading Commission (CTFC) control of crypto regulation. This move would provide more regulatory clarity for the industry. 

Trump Plans Major Crypto Regulation Changes

The incoming administration plans significant changes in crypto regulations. On Wednesday, November 27, FOX Business reported that the Trump team is considering putting the CFTC in charge of crypto regulation. The move aims to bring regulatory clarity to crypto. 

The CFTC would need additional resources to ensure investor protection in the crypto industry. Chris Giancarlo, Former CFTC Chair and a key player in Trump’s crypto strategy, suggested that the Trump team is considering empowering the agency. 

“With adequate funding and under 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,” he explained.

Why The Crypto Industry Prefers SEC over CFTC

So far, the CFTC and the Securities and Exchange Commission (SEC) have competed over crypto regulation. The SEC, under Chair Gary Gensler , considered almost all crypto assets as securities. As such, the agency enforced its rules, often perceived as too harsh by the crypto industry. 

The CFTC, on the other hand, handles commodities and the derivatives market. As these markets are dominated by big players, they typically take a lighter approach to regulations. The SEC, on the other hand, typically focuses on protecting smaller investors. 

Still, the agency would likely need to expand significantly to protect crypto investors. Notably, it employs 700 people and has a budget of $400 billion, compared to the SEC’s $2.4 billion budget and 5,300 employees.

On the Flipside

• Earlier, reports surfaced that Trump’s team is considering adding a designated position in the administration for crypto assets. 
• The former SEC Chair Gary Gensler announced his resignation after the Trump victory. 

Why This Matters

Regulation is a key risk factor for crypto assets in the US. If empowering the CTFC can bring clarity, the industry will be better positioned to grow. 

Read more about Trump’s crypto promises: 
Trump Wins US Elections: Here Are His Most Daring Crypto Promises

Read more about Solana’s ecosystem growth: 
Solana Leads With $115B DEX Volume in November