New hope for encryption? The Trump team is considering transferring the regulatory authority of encryption currency to CFTC

According to Fox Business's report, the incoming Trump administration hopes to expand the Commodity Futures Trading Commission (CFTC)'s powers, authorizing it to regulate the $3 trillion digital asset market.

What is the jurisdiction of CFTC and SEC?

Commodity Futures Trading Commission (Commodity Futures Trading Commission, CFTC) is an independent federal agency empowered by Congress to oversee the U.S. derivatives market, which has a value of about $20 trillion, including the trading of futures, options, as well as physical commodities such as gold, oil, and wheat. The mission of the CFTC is to protect market participants and the public from fraud, manipulation, and abusive practices, and to promote open, competitive, and financially sound futures and options markets.

In the US cryptocurrency regulation, there is often an ambiguous jurisdiction between the SEC and the CFTC. For example, the chairman of the CFTC believes that BTC and Ethercoin are both commodities and should be under the jurisdiction of the CFTC. However, the SEC argues that cryptocurrencies with securities attributes should be under the jurisdiction of the SEC. In addition to BTC, most tokens fall into the category of securities.

Due to the uncertainty of the classification of digital assets and the reluctance of the SEC or CFTC to establish specific rules, both institutions regulate the field through enforcement actions. Under the leadership of Gensler, the SEC led a three-year industry-wide crackdown to strengthen his view that most cryptocurrencies, except for BTC, are securities, which makes him and the SEC largely unpopular in the encryption industry in the United States, where the cryptocurrency industry prefers the CFTC as the main regulatory agency.

Will the jurisdiction of digital assets be under CFTC?

Former CFTC Chairman Chris Giancarlo told Fox Business: With sufficient funding and the right leadership, I believe CFTC can start regulating digital commodities on the first day of Trump's presidency.

Granting the CFTC regulatory authority over Bitcoin and Ethereum (which account for 70% of the global encryption market) and potentially other Tokens that are considered digital commodities in the Spot market will also give it the power to regulate the trading of these assets on exchanges. If implemented, this move will mark an important step towards providing regulatory clarity to companies and individuals participating in the two largest Cryptocurrency trades by Market Cap, as there is currently no regulatory body with clear jurisdiction over these Spot market transactions.

Chris Giancarlo may become the 'encryption czar'.

65-year-old Giancarlo served as CFTC chairman during the first term of Trump's presidency. He has long advocated for his CFTC to play a greater role in regulating digital currencies. Under Giancarlo's leadership, the CFTC approved the first BTC futures trading product in the United States.

He has always been a key member of the New Trump Transition Team, and the platform promises to provide a more friendly regulatory environment for Cryptocurrency and potential revolutionary Block chain technology, thus promoting the use of digital assets for transactions.

Trump's team is considering creating a new position in the White House dedicated to Cryptocurrency policy, and Giancarlo, who has Washington, D.C. experience and a deep understanding of policy implementation, is currently a potential candidate. The market also refers to this position as the 'encryption czar'.

(Trump's new hope: White House establishes encryption policy new position, Brian Brooks as SEC chairman candidate?)

Does this article bring new hope for encryption? The Trump team is considering transferring the regulatory authority of encryption currencies to the CFTC. It first appeared in Chain News ABMedia.