PANews reported on December 7 that according to Hong Kong Ta Kung Pao, Fu Rao, executive director of the Hong Kong International New Economy Research Institute, said in an article that US President-elect Trump plans to reshape the regulatory framework for cryptocurrencies and give the Commodity Futures Trading Commission (CFTC) greater regulatory power. This change is intended to cover the $3 trillion digital asset market while weakening the jurisdiction of the US Securities and Exchange Commission (SEC). This move is seen as an important policy turning point in the cryptocurrency field and may have a far-reaching impact on the global crypto market.
Cryptocurrency regulation in the United States has long faced the problem of unclear responsibilities. Under the existing framework, the SEC and CFTC regulate the crypto industry separately through law enforcement actions. However, due to the lack of clear legal basis, the two agencies have been in dispute over the scope of their powers and responsibilities. In contrast, the CFTC is known for its mild regulation of cryptocurrencies and is regarded by the industry as a friendlier regulator. The CFTC mainly regulates the derivatives market, including futures and options trading, while its authority over the spot market is limited. The Trump administration intends to expand the CFTC's scope of responsibilities, allowing it to fully regulate the spot market of digital commodities including Bitcoin and Ethereum. This move will not only help improve market transparency, but also provide a clearer legal framework for the development of the digital asset industry.
