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The Commodity Futures Trading Commission (CFTC) could soon see greater powers added under President-elect Trump when it comes to the cryptocurrency market.
FOX Business reports the incoming Trump administration wants to expand the power of the CFTC by granting it oversight of a significant portion of the $3 trillion digital asset industry.
If the reports are correct, this move could see the regulatory power of the Securities and Exchange Commission being rolled back. It’s the SEC who have the power over the digital asset industry under President Biden and the outgoing chairman, Gary Gensler.
The CFTC currently oversees the $20 trillion U.S. derivatives market which includes the trading of futures and options, as well as physical commodities like oil, gold, and wheat.
The CFTC could soon play a larger role in crypto industry
While the Commodity Futures Trading Commission does have the power to mandate market rules and bring enforcement cases, it’s often referred to as the ‘little sister’ of the SEC as it’s perceived as having a lighter regulatory touch.
The report states ‘sources with direct knowledge of the Trump team’s thinking’ say the “CFTC’s role could soon expand to include the regulation of spot markets for digital assets deemed commodities – such as bitcoin and ethereum – along with the exchanges that facilitate their trading.”
If the regulatory body does gain the additional powers, this could see it regulating the exchanges the assets are traded on which could mark a step forward in providing regulatory clarity.
There hasn’t yet been a comment made specifically about this suggested change from the President-elect, but he has made his intentions about cryptocurrency clear.
He has regularly stated his support for the industry and his team is contemplating whether or not to create a new White House role around it.
His team is said to be already vetting candidates and if it goes ahead this will be the first time this role has occurred within the White House.
There are also claims the business mogul turned politician holds over $9 million worth of cryptocurrency and tokens himself.
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