- Chris Giancarlo talks about a possible rollback of some regulatory powers to the CFTC
- This is supposedly an initiative that the new Trump administration is going to move through Congress
- In theory, it could ease regulation and make it more favorable for the crypto industry
According to FOX Business, Donald Trump’s administration is going to pass an initiative to roll back some of the regulatory authority over crypto assets back to the CFTC.
This could eliminate the problems from the overregulated SEC, which took its power under Joe Biden and make a more favorable infrastructure for the crypto industry.
More About the Potential Initiative and the CFTC
The CFTC is commonly referred to as the SEC’s little sister, as despite its authority to implement regulations on the markets, its rulings are perceived as weaker regulations because its powers are less extensive and strict.
In particular, the primary authority to regulate crypto assets shifted from the CFTC to the SEC under Joe Biden, and their strictness has often created difficulties for the crypto industry’s development, such as the famous Ripple and SEC dispute.
Now, that could potentially change, as former CFTC Chairman Chris Giancarlo said on FOX Business:
“With adequate funding and under the right leadership, I think the CFTC could hit the ground running to begin regulating digital commodities on day one of Donald Trump’s presidency.”
Since it’s always about the people behind the decisions, according to speculation by some Chris Giancarlo was seen as the primary replacement for Gary Gensler, which could potentially fix the SEC’s anti-crypto initiatives.
“There’s a lot of work to be done at the SEC — many of its top talent has left the building, so we need to get it functioning again and refocus its mission to a pro-innovation agenda.”
However, Chris Giancarlo also made the comment that he doesn’t want to “clean up the mess left by Gary Gensler for a second time.”
That said, some worry that rolling back the authority to regulate digital assets to the CFTC could create some confusion and overlap with the authority of other agencies like the Department of Agriculture.
Chris Giancarlo said those concerns would need to be addressed using specific language in any new legislation giving the CFTC spot authority over digital commodities.
Conclusion
It is too early to say that Chris Giancarlo’s words are decisive. At this point, the Trump administration is just getting started and a lot of initiatives may fall off or change beyond recognition in an attempt to implement them.
However, we are seeing a really large number of potential initiatives to change crypto regulation, and perhaps many of the campaign promises will find their fulfillment.
Be aware and stay tuned.
