Trump wants the CFTC to be in charge of crypto regulation, not SEC
Donald Trump’s incoming administration has plans to hand over most of the crypto industry’s regulatory power to the Commodity Futures Trading Commission (CFTC).
This is a direct move to strip the Securities and Exchange Commission (SEC) of its grip on the $3 trillion crypto market—a market that’s been stuck in a regulatory disaster for years.
Trump’s idea? Get rid of the heavy-handed tactics the SEC used under Gary Gensler during Biden’s term. Instead, Trump wants a system that encourages innovation, especially in blockchain technology, while setting some boundaries for the growing crypto space.
CFTC’s new frontier
The CFTC might be a smaller regulator than the SEC, but Trump sees it as better suited for crypto. It already oversees the $20 trillion U.S. derivatives market, including futures, options, and commodities like gold, oil, and wheat.
Unlike the SEC, which regulates securities and targets small investors, the CFTC focuses on sophisticated institutional players who are seen as better at managing financial risks. This makes the agency a favorite among crypto insiders.
Under Trump’s plan, the CFTC’s job would grow to include overseeing Bitcoin, Ethereum, and other digital assets classified as commodities. This includes regulating spot markets—places where these assets are bought and sold—and the exchanges that handle those trades.
Right now, there’s no single regulator managing these markets, creating massive uncertainty for companies and traders. Chris Giancarlo, a former CFTC chair nicknamed “Crypto Dad,” backs this plan.
“With adequate funding and leadership, the CFTC could regulate digital commodities from day one of Trump’s presidency,” he said.
Giancarlo, who served under Trump during his first term, pushed for the CFTC to approve Bitcoin futures trading in 2017 and has been advocating for more crypto oversight ever since.
