The administration of Donald Trump seeks to place certain cryptocurrencies under the jurisdiction of the CFTC, according to Fox Business.
Sources from Fox indicate that if the decision is made, the Commission will oversee all digital assets deemed to be commodities. This list includes Bitcoin and Ethereum, as well as the markets where they are traded.
In 2022, SEC Chairman Gary Gensler noted that the CFTC needs greater control over certain digital assets, although he believes most cryptocurrencies are securities. In 2023, he stated his support for Bitcoin’s transition to the jurisdiction of the “sister” Commission.
Currently, no U.S. government agency has clear authority over spot cryptocurrency transactions. Both the SEC and CFTC are involved in regulation, leading to conflicts. Granting control over specific assets to the Commodity Futures Trading Commission partially addresses this issue.
Former CFTC Chairman Chris Giancarlo expressed optimism to Fox Business journalists:
“I think that with adequate funding and proper leadership, the CFTC could immediately begin regulating digital commodities from the first day of Donald Trump’s presidency.”
In the run-up to the elections, he was named as a potential candidate for the head of the SEC should Trump win. However, Giancarlo, who succeeded Gensler as CFTC chairman in 2017, reportedly declined. He cited a reluctance to “clean up the mess left by Gary Gensler” for a second time.
In September, the CFTC fined Uniswap Labs $175,000 for the unregistered offering of derivatives.