PANews reported on November 27 that the incoming Trump administration hopes to expand the power of the Commodity Futures Trading Commission (CFTC) and grant it the power to regulate a large part of the digital asset market, according to Fox Business News. The move is part of a broader effort by President-elect Donald Trump and the Republican majority in Congress to weaken some of the SEC's regulatory powers over the digital asset industry under President Biden and outgoing SEC Chairman Gary Gensler.
With Trump in office and the crypto industry's growing influence in Republican politics, the CFTC's responsibilities may soon expand to oversee spot markets for digital assets considered commodities, such as Bitcoin and Ethereum, and the exchanges that facilitate their trading, according to sources with direct knowledge of the Trump team's thinking.Key figures in the incoming Trump administration believe that loosening regulations is needed to spur innovation in the crypto business, including the potentially transformative blockchain technology.
“With adequate funding and the right leadership, I think the CFTC could start regulating digital commodities on Day 1 of the Trump presidency,” said Chris Giancarlo, former CFTC chairman.
