As a seasoned financial analyst with over two decades of experience in navigating the complex and ever-evolving world of regulatory landscapes, I find the potential shift in crypto regulation under Donald Trump’s incoming administration intriguing.
As a researcher, I’m observing that reports suggest Donald Trump’s upcoming administration is planning to assign the oversight of the cryptocurrency industry to the Commodity Futures Trading Commission. This potential shift could significantly diminish the regulatory authority previously held by the Securities and Exchange Commission within this sector.
According to a report by Fox Business on November 26th, it is possible that the Commodity Futures Trading Commission (CFTC) may begin regulating markets for digital assets classified as commodities and crypto exchanges.
According to reports from Fox News, the transition team of the newly elected U.S. President, Donald Trump, feels that overly strict regulatory actions by the Securities and Exchange Commission (SEC) against crypto-related industries have hindered innovation in this field within the United States. They propose a more lenient approach to encourage greater growth in the crypto sector.
Should the Commodity Futures Trading Commission (CFTC) take charge of cryptocurrency regulation, this development could represent a significant triumph for the regional sector. For quite some time, the industry has indicated that they view CFTC as their preferred regulatory body due to its reputation for being more fair and having a less intrusive approach.
According to former CFTC Chairman Chris Giancarlo, given sufficient financial support and suitable guidance, he believes that the Commodity Futures Trading Commission (CFTC) could quickly initiate regulation of digital commodities as soon as Donald Trump takes office.
🌐 BREAKING NEWS: It’s being reported by FOX that the Trump administration is considering giving the Commodity Futures Trading Commission (CFTC) responsibility for regulating digital assets.
— CryptoMoon (@CryptoMoon) November 26, 2024
Giancarlo attempted to persuade the Senate Agriculture Committee, responsible for overseeing the Commodity Futures Trading Commission (CFTC), to back the CFTC’s supervision of the spot cryptocurrency market by pointing out the regulator’s early involvement with Bitcoin when it classified it as a commodity in 2015.
The CFTC approved Bitcoin options under Giancarlo’s leadership in December 2017.
In a mild-leaning stance on cryptocurrencies, Chair Rostin Behnam of the Commodity Futures Trading Commission (CFTC) has requested additional funds from the Senate Agriculture Committee. This request aims to enhance regulation of the crypto markets, not just through enforcement, but also by establishing more effective oversight mechanisms.
Compared to the Securities and Exchange Commission’s budget of $3 billion for the fiscal year 2024, the Commodity Futures Trading Commission’s operating budget of $706 million for enforcing fraud and market manipulation is about four times smaller.
The commodities regulator also only employs around 700 staff compared to the SEC’s 5,300.
Approximately half of the enforcement actions undertaken by the Commodity Futures Trading Commission (CFTC) in the year 2024 were directed towards crypto businesses. This figure, as stated by Behnam, is a “remarkable” or “impressive” statistic considering that the CFTC doesn’t have a specific mandate to oversee the cryptocurrency industry.
Some of these regulatory measures have been applied to cryptocurrency firms that operate outside the United States as well.
In the meantime, it’s been announced that Gary Gensler will step down as the head of the SEC in January 2025, which coincides with Donald Trump’s second inauguration.
SEC Commissioner Jaime Lizárraga has announced that he will be leaving his role, effective January 17, due to his wish to devote more time to his wife, who is currently fighting cancer.
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2024-11-27 05:55