- Trump’s administration plans to shift crypto regulation authority from the SEC to the CFTC.
- “Crypto Czar” role proposed, with Chris Giancarlo and Ripple CEO in key discussions.
As a seasoned crypto investor with years of navigating the digital asset landscape, I am thrilled about the potential changes in U.S. cryptocurrency regulation under President Trump’s administration. The proposed shift from the SEC to the CFTC is not only long overdue but also aligns with the industry’s preference for a more balanced and fair regulatory body.
Known for being supportive of cryptocurrencies during his campaign, President Donald Trump is now carefully moving forward to enhance the cryptocurrency scene in the United States.
It’s been hinted that during his upcoming term, he might empower the Commodity Futures Trading Commission (CFTC) to take on a significant supervisory position in the realm of cryptocurrencies.
A possible transition of regulatory control might considerably diminish the power of the Securities and Exchange Commission (SEC), signifying a crucial turning point in the manner U.S. cryptocurrency industry is regulated.
How will the CFTC be better than the SEC in crypto regulation?
As reported by FOX Business, the Trump administration intends to strengthen the powers of the Commodity Futures Trading Commission (CFTC) by allowing it to supervise a significant section of the approximately $3 trillion cryptocurrency market.
It seems that this action can be seen as a straightforward reaction to concerns about excessive regulation, which some people believe the SEC, led by Gary Gensler, and President Joe Biden have implemented.
Under Republican control in Congress, this action supports Donald Trump’s larger strategy to limit the Securities and Exchange Commission’s involvement in the cryptocurrency market. This suggests a movement towards more equitable administration within the digital assets sector.
Generally speaking, it’s been a common preference among this industry to choose the Commodity Futures Trading Commission (CFTC) as their primary regulator. This is largely due to the CFTC’s reputation for fairness and its comparatively lenient approach compared to other regulatory bodies.
Such a change might foster an atmosphere more conducive to businesses, spurring innovation, all the while ensuring proper supervision remains in place.
What’s more?
Remarking on the same, former CFTC Chairman Chris Giancarlo told Fox,
Given sufficient financial support and appropriate guidance, I believe that the Commodity Futures Trading Commission (CFTC) could be ready to immediately start regulating digital commodities at the beginning of President Donald Trump’s term.
Clearly, if the Commodity Futures Trading Commission (CFTC) is given jurisdiction over the spot markets for Bitcoin and Ethereum, which together make up almost 70% of the global crypto market, it would also mean that the CFTC’s authority extends to the platforms where these transactions are carried out.
As a researcher, I believe that making such a move could provide the necessary regulatory transparency within our field, resolving a persistent issue regarding jurisdiction.
Taking this action will establish a systematic structure for businesses and crypto traders dealing with the top two digital currencies based on market value, thereby enhancing trust and openness within the marketplace.
Who will be the next “crypto Czar”?
Simultaneously, it appears Trump’s government is considering establishing a new role, a “Cryptocurrency Leader”, which hints at their dedication towards developing a consistent and comprehensive policy on digital currencies.
Chris Giancarlo, who was previously the head of the Commodity Futures Trading Commission, is being considered as a possible contender for the role. This suggests that President Trump aims to utilize seasoned guidance in this dynamic sector by choosing Giancarlo.
Moreover, Brad Garlinghouse, Ripple’s CEO, is also frequently involved in conversations about his role, underscoring the government’s emphasis on working closely with influential figures in the industry.
This advancement underscores Trump’s forward-thinking strategy aimed at placing the United States at the vanguard of cryptocurrency advancements and governance.
Seeing the ongoing discussions, Giancarlo put it best when he said,
The Securities and Exchange Commission (SEC) has strong foundations, but the individual taking over must possess both strategic policy expertise and exceptional administrative abilities. This new leader should aim to reintegrate the SEC into the broader administrative plan as a valuable contributor.
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2024-11-27 14:16