President-elect Donald Trump is planning to hand the Commodity Futures Trading Commission (CFTC) oversight of crypto, according to Fox Business. The move could limit the Securities and Exchange Commission’s (SEC) regulatory power over the industry.
Why Trump Wants to Limit SEC’s Power
Fox Business says the CFTC will regulate the crypto spot markets if Trump moves ahead with his plans. But why is the President-elect considering shifting regulatory power from the SEC to the CFTC? The media house claims that Trump views SEC’s enforcement actions against crypto players as a stumbling block to blockchain innovations.
If the CFTC becomes the crypto regulator, industry players will consider the move a big win as they have always preferred the agency’s regulatory approach to digital assets.
Former CFTC Chair Supports Trump’s Plans
While speaking to a Fox journalist on Tuesday, former CFTC Chair Chris Giancarlo said if the agency is well-funded and run by the right leaders, it could regulate crypto in a way that promotes the growth of the nascent industry.
During his tenure, Giancarlo attempted to convince the Senate to support the CFTC’s bid to regulate crypto spot markets but did not bear fruits. However, under his leadership, the agency gave the green to Bitcoin options in late 2017.
Meanwhile, CFTC Chair Rostin Behnam has been asking the Senate to allocate more funds to the agency to regulate digital assets effectively. This year, the CFTC’s budget to prevent market manipulation and fraud was $706 million. By comparison, the SEC had an operating budget of $3 billion. Moreover, the CFTC employs about 700 workers, while the SEC’s workforce is 5,300.
Two SEC Leaders Set to Leave Office in January
As Trump reportedly plans to limit the SEC’s regulatory jurisdiction, the agency is prepared for a leadership change following its Chair Gary Gensler’s announcement a few days ago that he will leave office on January 20th, when Donald Trump officially assumes the White House. Gensler has been unpopular in the crypto community due to his law-by-enforcement approach. Under his leadership, several enforcement actions have been brought against crypto companies, including Kraken, Coinbase, and Binance.
Besides Gensler, SEC Commissioner Jaimer Lizarraga has also announced plans to resign on January 17th to spend time with his wife, who was recently diagnosed with cancer.
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