President-elect Donald Trump and the new administration are reportedly considering granting additional powers to the Commodity Futures Trading Commission (CFTC) to regulate digital assets, Fox Business reports.
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The expanded role of the CFTC may include overseeing exchanges and spot markets related to digital assets classified as commodities, such as Bitcoin and Ether. This will undermine the authority of the Securities and Exchange Commission (SEC) in regulating the crypto space.
Gary Gensler, the outgoing Chairman of the SEC, previously supported granting the CFTC authority to regulate Bitcoin, which he confirmed as a commodity. In March of this year, the CFTC also declared Ether to be a commodity in a lawsuit against the exchange KuCoin.
Donald Trump has announced plans to promote the development of the crypto industry in the United States. Notable measures include establishing a federal Bitcoin reserve fund, appointing a dedicated cryptocurrency position for the first time in history at the White House, and firing Gary Gensler – who previously took a tough stance on cryptocurrency. Last week, Gensler announced he would resign as SEC Chairman on January 20, 2025, the same day Donald Trump is set to officially assume office as the 47th President of the United States.