The regulatory framework for cryptocurrencies in the U.S. could undergo significant changes under a potential second Trump administration. Reports indicate that the Commodity Futures Trading Commission (CFTC) may take on full oversight of the crypto industry, including spot markets and exchanges, which are currently subject to less clear regulation.
The CFTC already oversees Bitcoin and Ethereum futures and options markets, while other digital assets traded on U.S. exchanges remain outside the SEC's direct control, leading to legal uncertainty. The Securities and Exchange Commission (SEC) has asserted authority over certain tokens, taking legal action against exchanges like Coinbase, Binance, and Kraken for offering unregistered securities. This has sparked ongoing jurisdictional conflicts between the SEC and CFTC, with the SEC having more resources, such as a larger budget and staff.
If the CFTC were to assume control over crypto oversight, it could bring much-needed clarity to the market. The CFTC has historically been more supportive of cryptocurrencies, approving Bitcoin futures in 2017, while the SEC only recently approved a spot Bitcoin ETF in 2024.
This shift could also be influenced by the resignation of SEC Chairman Gary Gensler in January 2024, coinciding with Trump's potential inauguration. With new leadership and possible increased funding, the CFTC could begin regulating digital commodities immediately under the new administration.
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