OX Business: Commodity Futures Trading Commission to Become US Cryptocurrency Regulator✔️
Nov-27-2024 10:21:08 AM
The CFTC currently oversees the $20 trillion derivatives market. Once Donald Trump takes office, the agency will be able to regulate both the futures and spot markets for cryptocurrencies because Bitcoin and Ethereum will be considered commodities. According to FOX Business sources, the CFTC will oversee exchanges where these cryptocurrencies are traded.
The US Securities and Exchange Commission (SEC) will have its regulatory powers over digital assets reduced. Last week, SEC Chairman Gary Gensler already announced that he would step down on January 20, 2025, after Trump’s inauguration.
Former CFTC Chairman Chris Giancarlo has noted that with sufficient funding and the right leadership, the CFTC could begin regulating cryptocurrencies, so-called digital commodities, on Day 1 of Donald Trump’s presidency. Giancarlo has emerged as a candidate for the White House’s “crypto czar,” who would oversee federal cryptocurrency policy.
Trump's initiative is intended to provide regulatory clarity for industry companies and traders. Currently, no U.S. regulator has clear authority to regulate the spot crypto market.
CFTC Chairman Rostin Behnam, who will step down after the change in administration, said that about half of the enforcement actions last year were against cryptocurrency businesses. Behnam said that 70-80% of crypto assets are not classified as securities.