CRYPTO - Trump aims to assign crypto oversight to the CFTC

In an effort to reshape the U.S. regulatory landscape for digital assets, Donald Trump‘s team is exploring a reform that could shift crypto oversight from the Securities and Exchange Commission (SEC) to the CFTC.

According to a report by Fox Business, the Trump administration plans to assign the CFTC a central role in regulating spot markets for digital assets classified as commodities and in overseeing exchange activities. This move would significantly reduce the SEC’s regulatory power.

Trump’s team argues that the SEC’s enforcement actions have hindered innovation in the U.S. digital asset space, advocating for a lighter regulatory approach to foster growth in the industry. For the crypto sector, this shift is seen as favorable since the CFTC is historically perceived as a less stringent regulator.

Chris Giancarlo, a former CFTC chairman, expressed optimism about the agency’s potential, stating that with adequate funding and proper leadership, the CFTC could begin regulating digital assets immediately.

Currently, the CFTC operates with a $706 million budget and employs around 700 staff, compared to the SEC’s $3 billion budget and 5,300 employees.

The proposed reform comes during a leadership transition for regulatory agencies. SEC Chairman Gary Gensler has already announced his resignation effective January 20, 2025, coinciding with Trump’s inauguration. SEC Commissioner Jaime Lizárraga is also set to step down.

https://atlas21.com/trump-aims-to-assign-crypto-oversight-to-the-cftc/