According to The Block, the Commodity Futures Trading Commission (CFTC) may gain the authority to regulate certain digital assets, including cryptocurrency exchanges and spot markets like Bitcoin and Ethereum that are considered commodities. This news comes from a report by Fox Business, citing informed sources.
Reports indicate that President-elect Donald Trump and the incoming administration may empower the CFTC to regulate certain digital assets, thereby diminishing the Securities and Exchange Commission's (SEC) regulatory power in the industry.
Outgoing SEC Chairman Gary Gensler supports the CFTC gaining the authority to regulate Bitcoin, noting that Bitcoin is a commodity. In March this year, the CFTC referred to Ethereum as a commodity in a complaint against the cryptocurrency exchange Kucoin.
Trump has promised to enhance the U.S. cryptocurrency industry, including creating a federal Bitcoin reserve, establishing the first White House position dedicated to cryptocurrency, and firing Gary Gensler, who has taken a strict stance on cryptocurrency. Last week, Gensler announced his plan to resign as SEC Chairman on January 20, 2025, the same day Trump is set to be inaugurated as the 47th President of the United States.
