According to Fox Business, the incoming administration of President-elect Donald Trump is reportedly exploring a major shift in cryptocurrency regulation. The potential policy change could grant the Commodity Futures Trading Commission’s (CFTC) authority over certain digital assets, reducing the Securities and Exchange Commission’s (SEC) role in the sector.
Redefining the SEC-CFTC Collaboration
The proposal to shift crypto regulation is part of a broader strategy to redefine the collaboration between the SEC and the CFTC, particularly on key issues like stablecoin regulation. Under the plan, the CFTC might take responsibility for overseeing crypto exchanges and spot markets for digital assets classified as commodities, such as Bitcoin and Ethereum.
If implemented, the move could alter the regulatory framework governing the cryptocurrency industry. Former CFTC Chairman Christopher Giancarlo expressed optimism about the proposal, stating:
“With adequate funding and under the right leadership, I think the CFTC could hit the ground running to begin regulating digital commodities on day one of Donald Trump’s presidency.”
Who Will Be the Next SEC Chair?
Trump’s administration is also considering reforms within the SEC, which has faced criticism under the leadership of current Chair Gary Gensler, who recently announced his resignation. Gensler’s regulatory agenda and progressive approach have reportedly led to high staff turnover and dissatisfaction among employees.
Giancarlo highlighted the challenges the SEC is facing, including the loss of experienced professionals and the need to refocus the agency on fostering innovation while rebuilding its workforce. Despite being a potential candidate to replace Gensler under the new administration, Giancarlo declined the opportunity, citing his reluctance to address the complications stemming from Gensler’s tenure.
Reflecting on the future of the SEC, the former CFTC Chairman noted that while the agency has a solid foundation, its next leader will need strong policy knowledge and management skills to make it a valuable part of the government’s plans again.
As the search for the next SEC Chair continues, sources close to Trump’s transition team emphasize that pro-crypto views are not the sole criterion for the role. The SEC’s responsibilities extend far beyond cryptocurrency, as it oversees markets for stocks, bonds, and mutual funds collectively valued at approximately $100 trillion.
Faith | January 14, 2025
Mishael Nwani | January 14, 2025
