CFTC Will Oversee Crypto Regulation Under Trump Administration

Reading Time: < 1 minute

The incoming Trump administration is looking to expand the role and power of the Commodity Futures Trading Commission in overseeing the digital asset market, which is valued at $3 trillion.

This is part of a larger effort by President-elect Donald power of the Securities and Exchange Commission, which has been closely regulating the digital asset industry under President Biden and SEC chairman Gary Gensler.

The CFTC, known as the “little sister” of the SEC, is mandated by Congress to regulate the $20 trillion US derivatives market, including futures, options, and physical commodities such as gold, oil, and wheat.

Like the SEC, the CFTC has the authority to establish market rules and take enforcement actions. However, due to the dominance of large institutional players in the derivatives market, the CFTC is often thought to have a less stringent regulatory approach compared to the SEC, which is responsible for protecting smaller investors.