- Trump’s administration plans to shift crypto regulation authority from the SEC to the CFTC.
- “Crypto Czar” role proposed, with Chris Giancarlo and Ripple CEO in key discussions.
Renowned for his pro-crypto stance during the election season, President Donald Trump is now taking calculated steps to elevate the U.S. cryptocurrency landscape.
Reports suggest that his incoming administration is considering granting the Commodity Futures Trading Commission (CFTC) a leading role in overseeing the crypto industry.
This potential shift in regulatory authority could significantly reduce the influence of the Securities and Exchange Commission (SEC), marking a pivotal change in how the crypto sector is governed in the United States.
How will the CFTC be better than the SEC in crypto regulation?
According to FOX Business, the Trump administration plans to enhance the authority of the CFTC by granting it oversight of a substantial portion of the $3 trillion digital asset market.
This initiative appears to be a direct response to what many perceived as regulatory overreach by the SEC under the leadership of Gary Gensler and President Joe Biden.
With Republican majorities in Congress, this move aligns with a broader effort by Trump to curtail the SEC’s influence in the cryptocurrency sector, signaling a shift toward more balanced governance in the digital asset industry.
That being said, the sector has consistently favored the CFTC as its regulator of choice, citing the agency’s reputation for fairness and its less stringent approach compared to other regulatory bodies.
This potential shift could push for a more industry-friendly environment, encouraging innovation while maintaining oversight.
What’s more?
Remarking on the same, former CFTC Chairman Chris Giancarlo told Fox,
“With adequate funding and under the right leadership, I think the CFTC could hit the ground running to begin regulating digital commodities on day one of Donald Trump’s presidency.”
Needless to say, granting the CFTC oversight of the spot markets for Bitcoin and Ethereum—representing nearly 70% of the global crypto market—would also extend its authority to the exchanges facilitating these trades.
Such a move could bring much-needed regulatory clarity to the industry, addressing a long-standing jurisdictional gap.
This step would provide a structured framework for companies and traders navigating the two largest cryptocurrencies by market capitalization, boosting confidence and transparency in the market.
Who will be the next “crypto Czar”?
Meanwhile, Trump’s administration is reportedly exploring the creation of a “Crypto czar” position, signaling its commitment to shaping a cohesive cryptocurrency policy framework.
Former CFTC chairman Chris Giancarlo has emerged as a potential candidate, reflecting Trump’s intent to leverage experienced leadership in this transformative space.
Additionally, Ripple CEO Brad Garlinghouse has also been a prominent figure in discussions surrounding the role, emphasizing the administration’s focus on collaboration with industry leaders.
This development highlights Trump’s proactive approach toward positioning the U.S. at the forefront of cryptocurrency innovation and regulation.
Seeing the ongoing discussions, Giancarlo put it best when he said,
“The SEC has great bones, but whoever leads it next will need great policy chops as well as great admin skills to bring it back to being a contributing part of an administrative agenda.”
