Overview

• The incoming Trump administration plans to grant the Commodity Futures Trading Commission (CFTC) authority over cryptocurrency spot markets, including Bitcoin and Ethereum.
• This move would reduce the Securities and Exchange Commission's (SEC) regulatory power over the digital asset industry, which has faced criticism for its enforcement-heavy approach under outgoing SEC Chair Gary Gensler.
• Former CFTC Chair Chris Giancarlo, known as 'Crypto Dad,' supports the proposal, citing the CFTC's experience with complex financial markets and its lighter regulatory touch as beneficial for innovation.
• Concerns remain over the CFTC's limited budget and staffing compared to the SEC, with calls for additional congressional funding to address resource constraints.
• The Trump team is also considering creating a new White House role dedicated to cryptocurrency policy, signaling a broader shift in the U.S. government's approach to digital assets.