US President-elect Donald Trump appears set to appoint the US Commodity Futures Trading Commission (CFTC) to oversee the crypto industry.
This appointment will put the CFTC ahead of the Securities and Exchange Commission (SEC) in regulating the crypto industry.
Trump to Appoint CFTC to Oversee Crypto, Replacing SEC
Fox News first reported the story, claiming the CFTC could oversee crypto exchanges and the spot market for digital assets considered commodities. Sources close to the matter claim Trump’s administration plans to take crypto away from the SEC, blaming the regulator for slowing down innovation in the industry.
🚨🇺🇸 TRUMP PLANS CFTC TAKEOVER OF CRYPTO REGULATION
The incoming Trump administration is positioning the Commodity Futures Trading Commission (CFTC) to oversee the $3 trillion digital asset market, scaling back the SEC’s role in crypto oversight under Biden.
Trump’s plan aims… pic.twitter.com/Nt6UWxCxLm
— Mario Nawfal (@MarioNawfal) November 26, 2024
A potential CFTC appointment aligns with the interests of many crypto enthusiasts who prefer the commodities regulator to the SEC. The SEC, under Gary Gensler, adopted an enforcement approach to crypto regulation, leading many crypto firms to explore other countries with better and clearer policies.
CFTC Chair Rostin Behnam has previously expressed interest in crypto regulation, claiming that Ethereum falls under the CFTC’s authority. Behnam’s claims sharply contrast with the SEC’s controversial view of all Proof-of-Stake tokens as securities. So, a clearer division of responsibilities between the two agencies could resolve such conflicts, providing the crypto industry with much-needed clarity.
Just In : CFTC Chair Rostin Behnam anticipates no Congressional action on crypto legislation this year, highlighting ongoing regulatory uncertainty. #CryptoRegulation #CFTC #Bitcoin pic.twitter.com/81nrJr5p0h
— AltCoiners.live (@alt_coiners) October 22, 2024
Challenges Ahead
While the idea of the CFTC taking charge of crypto regulation is promising, it comes with significant challenges. The agency currently operates with fewer resources than the SEC, managing a budget of $400 million and a staff of 700.
In comparison, the SEC operates much larger. It operates on a $2.4 billion budget and has over 5,000 employees. So, the CFTC would need a boost in funding and manpower to manage the complexities of the crypto market effectively.
Chris Giancarlo Was Formerly At The CFTC & TODAY It’s Been CONFIRMED That The CFTC Will Be Taking A Bigger Role Than The SEC In Regulating Digital Assets Under Trump
Giancarlo Is Highly Speculated To Be Trump’s “Crypto Czar”
He Stated That He Believes The XRP Case Will Be… pic.twitter.com/4tXdoccK8W
— The Bearable Bull (@thebearablebull) November 26, 2024
Another potential issue is the strain this expanded role could place on the CFTC’s existing duties. The CFTC has historically focused on areas like agricultural commodities. So, the agency might face difficulties balancing traditional responsibilities with the demands of regulating a dynamic industry like the crypto market.
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