Trump's Plan to Reshape Cryptocurrency Regulation Could Impact Global Markets
According to Odaily, the Executive Director of the Hong Kong International New Economy Research Institute, Fu Rao, has analyzed plans by U.S. President-elect Trump to reshape the regulatory framework for cryptocurrencies. The proposed changes aim to grant the Commodity Futures Trading Commission (CFTC) greater regulatory authority over the $3 trillion digital asset market, while diminishing the jurisdiction of the U.S. Securities and Exchange Commission (SEC). This move is seen as a significant policy shift in the cryptocurrency sector, with potential far-reaching effects on the global crypto market.The regulation of cryptocurrencies in the United States has long faced issues of unclear responsibilities. Under the current framework, the SEC and CFTC regulate the crypto industry through enforcement actions, but the lack of clear legal foundations has led to disputes over their respective jurisdictions. In contrast, the CFTC is known for its more lenient approach to cryptocurrency regulation, earning a reputation as a friendlier regulator within the industry. The CFTC primarily oversees the derivatives market, including futures and options trading, with limited authority over the spot market.The Trump administration's proposal to expand the CFTC's responsibilities would allow it to comprehensively regulate the spot market for digital commodities, including Bitcoin and Ethereum. This initiative is expected to enhance market transparency and provide a clearer legal framework for the development of the digital asset industry.