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Trump Administration Reportedly Plans to Empower CFTC Oversight of Crypto

The move signals digital assets will increasingly be regulated as commodities under Trump.
By: Mehab Qureshi
Trump Administration Reportedly Plans to Empower CFTC Oversight of Crypto

The Trump administration, set to take office in January, is reportedly exploring plans to expand the regulatory authority of the Commodity Futures Trading Commission (CFTC) over cryptocurrencies.

On Nov. 26, Fox Business reported that the Trump administration plans to give the CTFC greater oversight over the $3 trillion digital asset market, reducing the Securities and Exchange Commission’s (SEC) current efforts to police the sector.

The Trump administration also plans to encourage collaboration between the CFTC and SEC on stablecoin regulation.

"With adequate funding and under the right leadership, I think the CFTC could hit the ground running to begin regulating digital commodities on day one of Donald Trump’s presidency," former CFTC Chairman Chris Giancarlo said. "There’s a lot of work to be done at the SEC — many of its top talent has left the building, so we need to get it functioning again and refocus its mission to a pro-innovation agenda.”

With the CFTC tasked with overseeing commodities, the report indicates that Trump’s administration would take the view that most digital assets comprise commodity assets — contrasting against the SEC’s efforts to classify all digital assets excluding Bitcoin, and recently Ethereum, as securities.

White House Considers First-Ever Crypto Role

The news comes as Trump appears to be making moves to make good on his campaign promise to support the crypto asset industry.

On Nov. 20, Bloomberg reported that Trump’s transition team is exploring the creation of a crypto czar — a position solely tasked with digital asset policy that would comprise the first White House position dedicated to crypto. If created, the role would provide a direct line to the President, liaise with Congress, and coordinate between agencies like the SEC and CFTC.

Giancarlo, colloquially known as “Crypto Dad,” has emerged as the leading candidate for the role, reports suggest.

Giancarlo served as the 13th Chairman of the CFTC, overseeing the regulation of futures, options, and swaps derivatives markets. He was first nominated as a CFTC Commissioner by President Barack Obama and unanimously confirmed in June 2014. He was subsequently nominated as CFTC Chairman by President Donald Trump and again unanimously confirmed in August 2017, before stepping down in 2019.

Other names under consideration include Brian Brooks, the former acting Comptroller of the Currency, and Brian Quintenz, a16z’s head of policy. Both have been advising Trump’s transition team on crypto matters.

“There's a lot of consideration being undertaken right now in Mar-a-Lago on exactly how to get Trump's crypto agenda done, and what are the right pieces and what are the right people to make that happen,” Giancarlo said regarding the czar role.

Trump Plots Crypto Advisory Council

Trump is also rumored to be planning to assemble a crypto advisory council as part of his administration’s efforts to reshape U.S. digital asset policy.

On Nov. 21, Reuters reported that the council will bring together top executives from the cryptocurrency industry to advise on legislation, regulatory frameworks, and digital asset policy.

Trump first hinted at the creation of the crypto advisory council during the Bitcoin2024 conference in July. The crypto czar would likely lead the advisory council and oversee a team tasked with implementing Trump’s crypto agenda.

Major crypto firms like Ripple, Kraken, Circle, and Coinbase are lobbying for seats on the council. The council may also include former policymakers and enforcement officials.

Jeremy Allaire, CEO of Circle, expressed interest in joining, while venture capital firms Andreessen Horowitz (a16z) and Paradigm are also expected to secure representation.

According to a Nov. 19 report from The Wall Street Journal, Brian Armstrong, the CEO of Coinbase, recently met with Trump, though the details of their discussion remain unclear.

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