Report: Trump Team Wants to Transfer Crypto Regulation to CFTC, Weakening SEC’s Role

According to The Block, the Commodity Futures Trading Commission (CFTC) may gain authority to regulate certain digital assets, including cryptocurrency exchanges and spot markets such as Bitcoin and Ethereum, which are considered commodities. This information comes from a report by Fox Business, citing informed sources.

According to reports, President-elect Donald Trump and his incoming administration may grant the CFTC the ability to regulate certain digital assets, thereby weakening the regulatory power of the Securities and Exchange Commission (SEC) in the sector.

Outgoing SEC Chairman Gary Gensler supports the CFTC gaining the power to regulate Bitcoin, pointing out that Bitcoin is a commodity. In March of this year, the CFTC called Ethereum a commodity in a complaint against cryptocurrency exchange Kucoin.

Trump has pledged to strengthen the U.S. cryptocurrency industry, including by creating a federal Bitcoin reserve, creating the first-ever White House position dedicated exclusively to cryptocurrencies, and firing Gary Gensler, who has taken a hardline stance on cryptocurrencies. Last week, Gensler announced that he plans to step down as SEC chairman on January 20, 2025, the date Trump will be inaugurated as the 47th president of the United States.