Donald Trump Administration Seeks to Expand the Role of CFTC in Monitoring Cryptocurrencies

The upcoming government of President-elect Donald Trump plans to reshape the framework for managing cryptocurrencies in the United States by granting the Commodity Futures Trading Commission (CFTC) the authority to regulate digital assets, including Bitcoin and Ethereum. If approved by the Congress, the expanded role of the CFTC will regulate the spot market for digital commodities and oversee cryptocurrency exchanges. This is in stark contrast to the stricter approach of the SEC. While the CFTC tends to apply more lenient regulations due to its focus on the organized market. Former CFTC Chairman Chris Giancarlo has expressed confidence in the commission's expanded regulatory oversight and stated: With full funding and proper leadership, I think the CFTC can start to act immediately to regulate digital commodities from the very first day Donald Trump takes office as president. Furthermore, the current management context of CFTC is notable for overseeing the $20 trillion derivatives market of the United States with a small portion of SEC's budget and personnel. Expanding roles will require more resources to ensure effective oversight. In addition, the management axis is expected to enhance confidence in the cryptocurrency market among institutional investors. It provides a clear framework for managing digital assets. The proposed changes aim to better understand and strengthen innovation in the $3 trillion digital asset market with 50 million traders. It should be emphasized that this initiative aligns with Donald Trump's support for cryptocurrency. It includes plans for a federal Bitcoin reserve and the dismissal of Gary Gensler. Recently, Gensler announced his resignation as Chairman of the SEC on January 20, 2025.