CFTC logo seen on the screen of smartphone hold in hands in dark. Source: Ascannio - stock.adobe.com

Key Takeaways:

The Trump administration is considering shifting crypto regulatory oversight from the SEC to the CFTC, aiming for a lighter regulatory approach to foster innovation.
The CFTC, under its current and former leadership, has expressed readiness to regulate digital commodities with adequate funding and support.
This potential shift coincides with major leadership changes at the SEC, including Chair Gary Gensler’s resignation in January 2025.

The Trump administration may transfer regulatory authority over cryptocurrency markets to the U.S. Commodity Futures Trading Commission (CFTC), according to a Nov. 26 Fox Business report.

This shift would position the CFTC, rather than the Securities and Exchange Commission (SEC), as the primary regulator for crypto exchanges and digital assets classified as commodities.

JUST IN: 🇺🇸 President-elect Trump administration considers CFTC to lead digital asset regulation.
— Watcher.Guru (@WatcherGuru) November 26, 2024

Advocates of the move argue that the SEC’s aggressive enforcement has hindered innovation, while the CFTC’s lighter regulatory approach could foster growth in the U.S. crypto industry.

Former CFTC chair Chris Giancarlo expressed optimism, highlighting the agency’s capability to regulate digital commodities effectively under adequate funding and leadership.

🚨SCOOP: Trump admin eyes CFTC to lead digital asset regulation

Giving the @CFTC regulatory authority over the spot market for $BTC, $ETH and other tokens deemed digital commodities would give it the power to regulate the exchanges they’re traded on.https://t.co/8rxxKERJSA
— Eleanor Terrett (@EleanorTerrett) November 26, 2024

Giancarlo, who played a pivotal role in classifying Bitcoin as a commodity in 2015 and approving Bitcoin futures trading in 2017, previously lobbied for expanded CFTC oversight.

Current chair Rostin Behnam has similarly pushed for increased funding to address resource limitations.

The potential transition coincides with SEC leadership changes, including Chair Gary Gensler’s departure on Jan. 20, 2025.

This regulatory realignment could significantly impact the U.S. crypto landscape, potentially making it more innovation-friendly while establishing a clearer framework for oversight.

The CFTC’s perceived fairness and targeted enforcement may appeal to industry stakeholders seeking regulatory clarity.