The incoming United States administration under Donald Trump has big plans for the innovation sector. After years of constant attacks by the authorities, the new administration has in mind to let these markets progress in peace. In that sense, under his cabinet, the Commodities Futures Trading Commission (CFTC) will regulate cryptocurrencies.
This information derives from a recent work by Fox Business in which the former chairman of the CFTC, Chris Giancarlo, is interviewed. It should be noted that this official is one of the candidates to become the crypto czar.
In any case, the incoming administration could undertake this task of radical change in the regulation of digital assets. Basically, the Commission will now have under its command the crypto assets that are considered commodities, including Bitcoin (BTC) and Ethereum (ETH). This involves the regulation of trading platforms or crypto exchanges.
It should be noted that these two currencies make up the vast majority of the capitalization of a market valued at more than $3 trillion. In 2025, the world of cryptocurrencies is expected to grow sharply, which could lead to a much larger capitalization. This could become a serious challenge for the CFTC if it will actually regulate cryptocurrencies.
The CFTC’s challenges in regulating cryptocurrencies
It is important to keep in mind that changing regulators for the crypto market is not as simple a matter as it seems. In fact, the CFTC could face enormous setbacks if a massive expansion of its structures is not carried out. So far, this agency is designed to exclusively regulate futures trading of assets such as oil and gold.
Now, with cryptocurrencies under its charge and the enormous trade in them, the agency will face greater demands. To fulfill this mission, the budget and the number of staff would have to increase considerably, says Giancarlo.
Compared to the Securities and Exchange Commission (SEC), the CFTC is a modest agency. For example, in terms of budget and personnel, the differences are abysmal. In the first case, the CFTC receives $400 million, while the SEC has $2.4 billion. In terms of personnel, the CFTC has 700 employees compared to the SEC’s 5,300.
The latter means that the CFTC needs to grow substantially to face a crypto market that will soon surpass $3 trillion. Giancarlo believes that the CTFC has the theoretical capacity and willingness to face this new task and supports the expansion project.
It is worth mentioning that the CFTC has remained close to cryptocurrencies since 2015. By that date, it was determined that Bitcoin was a commodity. Currently, Giancarlo is one of the most prominent defenders of the crypto world in the face of repression led by the outgoing government administration.
Do you want to always be updated in the world of cryptocurrencies? Subscribe now to the CriptoTendencia WhatsApp channel! Here you will instantly receive the most relevant information about Bitcoin, Altcoins, DeFi, NFTs, Blockchain and the Metaverse.
Related
Crypto Keynote USA
For the Latest Crypto News, Follow ©KeynoteUSA on Twitter Or Google News.
