Bitcoin fluctuated violently this week, exceeding $8,000. After the price once dropped to a low of $90,791, bulls sounded the horn of counterattack, stimulating the price to return to above $95,800 before the weekend. The Trump administration, the president-elect of the United States, is considering transferring the regulatory power of the U.S. Securities and Exchange Commission (SEC) to allow the U.S. Commodity Futures Trading Commission (CFTC) to lead the regulation of digital assets. The U.S. Customs detained Bitmain's Antminer equipment for investigation into violating the Huawei chip ban.
Trump will reshape cryptocurrency regulation, US media: CFTC will take control
The incoming Trump administration wants to expand the CFTC’s regulatory authority, giving it the power to regulate a significant portion of the $3 trillion digital asset market, Fox Business has learned.
This is critical to the Bitcoin and cryptocurrency markets because the SEC has long considered most cryptocurrencies to be “securities” that must be regulated by the Securities and Exchange Commission, while the CFTC has considered them more “commodities.”
Gary Gensler, chairman of the U.S. Securities and Exchange Commission, has announced that he will leave his post when Trump is sworn in on January 20, 2025.
US media pointed out that the CFTC is often referred to as the "sister" of the US Securities and Exchange Commission. It is authorized by Congress to regulate the US $20 trillion derivatives market, including futures, options, and physical commodities such as gold, oil and wheat. Like the US Securities and Exchange Commission, the CFTC has the power to set market rules and bring enforcement cases, but its supervision is generally considered to be lighter than the former because the derivatives market is dominated by experienced institutional players rather than small investors, and is therefore considered to be better at managing risks.
With Trump in office and the crypto industry’s growing influence in Republican politics, the CFTC’s responsibilities may soon expand to oversee spot markets for digital assets, which are considered commodities, and the exchanges that facilitate their trading, according to sources with direct knowledge of the Trump team’s thinking.
More than 50 million people hold digital assets, but key figures in the incoming Trump administration argue that looser regulations are needed to spur innovation in crypto businesses, including potentially transformative blockchain technology, which could cut out costly middlemen in commercial transactions.
“With adequate funding and the right leadership, I think the CFTC could start regulating digital commodities on Day 1 of the Trump presidency,” said former CFTC Chairman Chris Giancarlo.
Giving the CFTC regulatory authority over spot markets for Bitcoin and Ethereum, which account for 70% of the global cryptocurrency market, as well as other tokens that may be considered digital commodities, would also give it the power to regulate exchanges that trade these assets. If implemented, the move would mark a major step toward providing regulatory clarity for companies and individuals involved in trading the two largest cryptocurrencies by market capitalization, as no regulator currently has clear jurisdiction over these spot market transactions.
Chips between China and the United States spread to the cryptocurrency circle: U.S. Customs detained Bitmain Antminer equipment
The U.S. Customs and Border Protection (CBP) has detained Bitmain Antminer equipment at multiple ports of entry, causing serious delays to U.S. Bitcoin mining operations. CryptoSlate revealed that the delay appears to be related to an investigation into violations of the Huawei chip ban. Previously, foreign media revealed that TSMC's specific customer, which acted as a "white glove" to resell chips to Huawei, was reportedly Sophgo, a chip design company under Bitmain.
The seized equipment includes S21 and T21 application-specific integrated circuits (ASICs), which are essential for bitcoin mining. Several mining companies reported waiting times of up to two months for these equipment, with one company saying the holding fee for 200 devices was more than $200,000.
The U.S. Customs and Border Protection reportedly took this action at the request of the Federal Communications Commission (FCC), but the specific reasons for the enforcement action are unclear.
The CryptoSlate article mentioned: “The delay appears to be related to Bitmain’s relationship with Suanneng Technology, which became the subject of an investigation by the U.S. Department of Commerce in October.”
The investigation was launched after TSMC chips were allegedly incorporated into Huawei processors. Huawei, which has been under US sanctions since 2019, has long been the focus of US national security scrutiny.
While U.S. Customs and Border Protection has targeted Bitmain shipments for detention, ASICs produced by other Chinese manufacturers have not been similarly detained. Advanced targeting teams responsible for identifying high-risk shipments have reportedly been involved in detentions at certain ports.
Bitcoin Technical Analysis
Economies.com said that Bitcoin is currently showing clear positive trading, breaking through the $95,820 level and trying to stay above it to activate the positive scenario and move in the direction of achieving expected gains in the following trading, with the main target being the $98,000 and then the $100,000 levels.
Technical indicators are providing positive signals in support of the expected rise and it is worth noting that a breakout above $95,820 and then $94,920 levels would halt the expected rise and push the price down and directly test the $91,855 area.
“The expected trading range on Friday is between $95,000 support and $100,000 resistance.”
Trend Forecast: Bullish
