Oversight of the cryptocurrency industry has long been an established question mark as the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) have been claiming jurisdiction, but the new administration under President-elect Donald Trump may set the record straight.
The Trump administration is looking to give authority to the CFTC to regulate the spot market for Bitcoin and other altcoins, a new report revealed.
Can Trump Government Open a Path for Much-Needed Clarity?
The Trump government is eyeing the CFTC to lead in digital asset regulation, Fox Business journalist Eleanor Terrett reported Tuesday, citing sources familiar with the matter.
If given the authority to oversee digital assets and cryptocurrencies, the CFTC may regulate tokens deemed commodities, as well as crypto exchanges, the report noted.
"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," former CFTC Chairman Chris Giancarlo said of the matter.
CFTC vs SEC in Regulating Crypto
By standing by their ground that cryptocurrencies are non-securities, many crypto-related businesses that faced off with the SEC's enforcement actions over the years have signaled that they may be more comfortable with the CFTC overseeing the sector.
Among the major differences between the CFTC and the SEC is the apparent contrast in enforcement approach. For instance, the SEC under Chair Gary Gensler has stuck to its enforcement-first process in regulating crypto firms, while the CFTC under Chair Rostin Behnam is deemed more moderate in its views of digital assets and less "overreaching" than the SEC.
Quite interestingly, the CFTC has a funding budget of $706.53 million for the fiscal year 2024, as opposed to the SEC's staggering $3.02 billion in budgetary resources for FY 2024.
Compared to the number of enforcement actions the SEC has implemented against crypto under Gensler, the CFTC under Behnam has been more moderate.
Last year, Behnam admitted that a "turf war" was brewing between the CFTC and SEC. He also seemed to throw shade on Gensler's insistence that existing SEC rules are applicable to all cryptocurrencies.
"It is figuring out how existing, decades-old law, fits into this new technology that seems to be changing and ultimately needs a new way of thinking around policy and legislating," he said at the time, adding that "under existing law, many of the tokens constitute commodities."
Trump White House Re-Entry Sparks New Hope for Crypto
Trump's re-entry into the White House in January has given hope for many crypto users and leaders over the fate of regulation around digital assets.
There are reports stating Trump is considering a new role that will focus entirely on crypto policy, which could then turn the tides in favor of the burgeoning industry.
