Donald Trump plans to give the Commodity Futures Trading Commission (CFTC) power to control the $3 trillion crypto market. This means Bitcoin (BTC), Ethereum (ETH), other Altcoins, and crypto exchanges could soon have clearer rules to follow.
What Is Trump Planning?
According to Mario Nawfal, the host of the largest live show on X, “TRUMP PLANS CFTC TAKEOVER OF CRYPTO REGULATION.” The new plan will give the responsibility of watching over the growing digital asset market to CFTC. Right now, the CFTC manages futures and options for entities like oil and gold but doesn’t handle crypto spot markets. Under Trump’s administration, the CFTC will gain the ability to regulate trading directly in Bitcoin, Ethereum, and other cryptocurrencies.
TRUMP PLANS CFTC TAKEOVER OF CRYPTO REGULATIONThe incoming Trump administration is positioning the Commodity Futures Trading Commission (CFTC) to oversee the $3 trillion digital asset market, scaling back the SEC’s role in crypto oversight under Biden.Trump's plan aims… pic.twitter.com/Nt6UWxCxLm
— Mario Nawfal (@MarioNawfal) November 26, 2024
This move could bring better rules and fair trading practices for crypto. Trump’s goal is to simplify crypto regulations in clear terms and help the market grow without confusion.
CFTC Faces Challenges
Even with this new role, the CFTC might struggle. Its 2024 budget is $400 million, much smaller than the Securities and Exchange Commission (SEC), which has $2.4 billion. The SEC also has more staff—5,300 compared to the CFTC’s 700 employees.
The CFTC will likely need more money and workers to handle such a big task.
Support for the Plan
Chris Giancarlo, the former CFTC chairman, supports the idea through a video post on X, by TheBearableBull. Giancarlo, known as “Crypto Dad,” has been part of the crypto world since 2015, when Bitcoin was labelled a commodity.
Giancarlo says the CFTC has the experience to manage the crypto market but needs enough funding. He also believes this plan could help the U.S. lead in blockchain technology.
Chris Giancarlo Was Formerly At The CFTC & TODAY It’s Been CONFIRMED That The CFTC Will Be Taking A Bigger Role Than The SEC In Regulating Digital Assets Under TrumpGiancarlo Is Highly Speculated To Be Trump’s “Crypto Czar”He Stated That He Believes The XRP Case Will Be… pic.twitter.com/4tXdoccK8W
— The Bearable Bull (@thebearablebull) November 26, 2024
If the plan works, the CFTC will also regulate crypto exchanges. These are platforms where people buy and sell digital currencies. Many in the crypto world believe the CFTC can be fairer than the SEC, which has been criticized for unclear rules.
What’s Next?
According to the SEC press release Gary Gensler, the SEC chairman, plans to step down in January 2025. This has raised hopes among crypto supporters for a friendlier regulatory environment.
Trump’s idea to put the CFTC in charge is gaining support from the crypto community. However, it remains unclear how the agency will handle such a huge market with limited resources. For now, Donald Trump’s plan offers a chance to create better crypto rules and reduce industry confusion. If successful, it could change the way digital assets are managed in the U.S. leading to a booming crypto sector.
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