On the evening of November 26, information appeared in the media that Donald Trump, who won the 2024 US presidential election, plans to transfer part of the powers of the US Securities and Exchange Commission (SEC) to regulate the crypto market to the Commodity Futures Trading Commission (CFTC).
We tell you how participants in the crypto community reacted to the news and what changes the market may face if the politician succeeds in implementing the plan.
What is known about the initiative
Information that the CFTC will take over some of the SEC’s powers related to the regulation of the crypto market, appeared on Fox Business. The media writes about the initiative with reference to information received from informed sources.
According to the publication, the CFTC may take over the regulation of cryptocurrency exchanges. Also, spot markets may come under the control of the regulator, the work on which involves transactions with cryptocurrencies, which are regarded as goods.
Information about the upcoming changes was indirectly confirmed by ex-CFTC Chairman Christopher Giancarlo.
Why the CFTC is better than the SEC
The SEC and CFTC have always been the two main regulators whose teams have been involved in the formation of legal standards for the digital asset market. The US Securities and Exchange Commission has clearly been more active, which has angered members of the crypto community. For example, the repression of the current head of the SEC, Gary Gensler, who announced his readiness to leave his post in January 2025, is considered the largest since 2008.
The CFTC has established itself as an agency that is much more loyal to crypto than the SEC. For example, while representatives of the US Securities and Exchange Commission persistently tried to prove that all coins except Bitcoin are illegally issued securities, the Commodity Futures Trading Commission defended the opposite position. According to department officials, most cryptocurrencies are goods. This view of the coins means that their issuers, in the eyes of the CFTC, did not violate securities laws when issuing the tokens.
The SEC’s crackdown did not lead to market regulation and clarification of rules that would once and for all resolve the dilemma about the status of cryptocurrencies. At the same time, under pressure from the Commission, crypto projects paid a record amount of fines to the regulator. In 2024 alone, according to Social Capital Markets estimatesThe SEC collected $4.68 billion from market participants. The amount is equal to 63% of the $7.42 billion that crypto projects have paid to the regulator since 2013.
The CFTC, like the SEC, is committed to bringing order to the crypto industry. The regulator has repeatedly targeted many crypto projects, including the largest crypto exchange Binance. The Commission focuses on trading platforms. In particular, the regulator has questions for decentralized exchanges. At the same time, the CFTC, unlike the SEC, does not see illegal securities in every second coin on the market.
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Source: Cryptocurrency
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