Trump's plan to reshape cryptocurrency regulations could impact global markets
According to Odaily, Fu Rao, executive director of Hong Kong’s New International Economy Research Institute, has analyzed U.S. President-elect Donald Trump’s plans to reshape the regulatory framework for cryptocurrencies. The proposed changes aim to grant the Commodity Futures Trading Commission (CFTC) greater regulatory authority over the $3 trillion digital asset market, while reducing the jurisdiction of the U.S. Securities and Exchange Commission (SEC). The move is seen as a significant policy shift in the cryptocurrency sector, with potentially far-reaching effects on the global cryptocurrency market.
Cryptocurrency regulation in the United States has long been plagued by unclear responsibilities. Under the current framework, the SEC and CFTC regulate the crypto industry through enforcement actions, but the lack of clear legal foundations has led to disputes over their respective jurisdictions. In contrast, the CFTC is known for its more permissive approach to cryptocurrency regulation, earning a reputation as a more industry-friendly regulator. The CFTC primarily oversees the derivatives market, including futures and options trading, with limited authority over the spot market.
The Trump administration’s proposal to expand the CFTC’s responsibilities would allow it to comprehensively regulate the spot market for digital commodities, including Bitcoin and Ethereum. The move is expected to improve market transparency and provide a clearer legal framework for the development of the digital asset industry.
