Trump Administration May Transfer Crypto Oversight to CFTC, Shifting SEC’s Authority

The Trump administration may soon make significant changes to how cryptocurrency is regulated, potentially shifting oversight from the Securities and Exchange Commission (SEC) to the Commodity Futures Trading Commission (CFTC). This move could impact major digital assets, like Bitcoin and Ethereum, by placing them under the jurisdiction of the CFTC, which oversees commodities.

Reports suggest that the incoming administration is exploring this transition as part of its efforts to streamline regulation of the fast-growing crypto sector. If implemented, this shift would empower the CFTC to regulate crypto exchanges and the spot markets for digital assets classified as commodities, while the SEC’s influence would likely diminish in the space.

Outgoing SEC Chairman Gary Gensler has already supported the CFTC’s expanded role, particularly regarding Bitcoin, which he classifies as a commodity. The CFTC has also signaled its stance on digital assets, such as Ethereum, by naming it a commodity in its March complaint against crypto exchange Kucoin.

This potential shift in oversight comes at a time when discussions about how to best regulate cryptocurrencies are intensifying. Industry experts believe the move could create a more business-friendly environment for digital assets, providing clarity for companies and investors navigating the evolving landscape.