Regulation
Donald Trump Plans To Give CFTC Oversight of $3T Crypto Market
The incoming Donald Trump administration is considering expanding the regulatory authority of the Commodity Futures Trading Commission (CFTC) to cover the $3 trillion digital asset market. This potential move is part of an initiative to reshape financial regulations in the U.S. under President-elect Trump. The decision could mark a major shift in how the crypto market is regulated.
Donald Trump Administration Eyes CFTC To Oversee Digital Asset Regulation
According to a Fox Business report, Donald Trump’s administration is looking to increase the regulatory reach of the CFTC by granting the agency oversight of the growing digital asset market. The proposal would specifically target digital assets such as Bitcoin and Ethereum, which are considered commodities under current law. If the plan moves forward, the CFTC would gain the authority to regulate the spot markets and exchanges.
Currently, the Commodity Futures Trading Commission oversees U.S. derivatives markets, including futures and options on commodities like oil and gold. However, the commission has not been responsible for regulating the digital asset spot markets. This move will grant the regulatory body new authority to enforce rules and ensure fair trading practices.
The decision is part of Donald Trump’s effort to reduce cryptocurrency regulatory burdens on the industry while providing clearer oversight.
Challenges of Expanding CFTC Role in Crypto Regulation
However, the current budget of the CFTC is much smaller than that of the Securities and Exchange Commission (SEC). The Commodity Futures Trading Commission’s 2024 budget is roughly $400 million, compared to the SEC’s budget of $2.4 billion. This discrepancy is a challenge to the agency’s ability to oversee a $3 trillion market effectively.
In addition, the CFTC employs only around 700 staff members, compared to the SEC’s 5,300 employees. This limited capacity could require additional funding and resources if the commission is tasked with overseeing digital asset transactions.
Former CFTC Chair Chris Giancarlo supports stronger crypto regulation and backs the agency’s expanded role. Giancarlo argued that the commission has been involved in crypto markets since 2015, when it recognized Bitcoin as a commodity. Giancarlo has suggested that, with proper funding and leadership, the regulatory commission could regulate digital commodities.
Also known as “Crypto Dad” for his progressive stance on blockchain and digital currencies, Giancarlo is a frontrunner for the proposed White House crypto czar role under Donald Trump. The role will streamline crypto regulations and promote blockchain development.
Under Giancarlo’s leadership, the commission approved the trading of Bitcoin futures, further cementing its role in overseeing the digital currency space.
In addition to overseeing the spot market, the regulatory body would also have the authority to regulate crypto exchanges, which are critical to the market.
Many in the crypto industry have voiced frustration with the SEC’s approach, which has led SEC chair Gary Gensler to announce his resignation on January 20, 2025. As a result, Donald Trump’s push for the CFTC to lead has garnered support from the crypto sector.
Ronny Mugendi
Ronny Mugendi is a seasoned crypto journalist with four years of professional experience, having contributed significantly to various media outlets on cryptocurrency trends and technologies. With over 4000 published articles across various media outlets, he aims to inform, educate and introduce more people to the Blockchain and DeFi world. Outside of his journalism career, Ronny enjoys the thrill of bike riding, exploring new trails and landscapes.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
A U.S. appeals court has ruled that the Treasury Department’s Office of Foreign Assets Control (OFAC) exceeded its authority by sanctioning Tornado Cash’s immutable smart contracts. This decision overturns earlier actions taken by OFAC and removes Tornado Cash’s smart contracts from the sanctions list, allowing U.S. citizens to resume their use of the protocol.
US Court Rules Tornado Cash Smart Contracts Not Property
On November 26, the Fifth Circuit Court of Appeals delivered a key ruling on the legality of sanctions imposed on Tornado Cash by OFAC. The court found that the sanctions were unlawful because Tornado Cash’s smart contracts, as immutable open-source code, cannot be owned or controlled by any entity or individual.
“We hold that Tornado Cash’s immutable smart contracts (the lines of privacy-enabling software code) are not the ‘property’ of a foreign national or entity,” the three-judge panel stated in its decision. The court explained that under the International Emergency Economic Powers Act (IEEPA), OFAC is only authorized to sanction property owned or controlled by foreign persons, which does not apply to the autonomous smart contracts.
The court directed a Texas district court to grant a motion for partial summary judgment filed by the plaintiffs, led by Joseph Van Loon, challenging the sanctions.
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Kelvin Munene Murithi
Kelvin is a distinguished writer with expertise in crypto and finance, holding a Bachelor’s degree in Actuarial Science. Known for his incisive analysis and insightful content, he possesses a strong command of English and excels in conducting thorough research and delivering timely cryptocurrency market updates.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
- Morocco is drafting new crypto regulations to reverse its 2017 digital asset ban.
- Morocco’s central bank is exploring the creation of a central bank digital currency (CBDC).
- Global trends show more countries, like the UK and EU, moving toward crypto regulation.
Morocco is reconsidering its stance on cryptocurrencies, with plans to reverse a 2017 ban on digital assets and introduce comprehensive regulatory frameworks.
Morocco’s central bank, Bank Al-Maghrib, is currently drafting new legislation aimed at regulating digital currencies, signalling a significant shift in the government’s approach to cryptocurrencies.
Abdellatif Jouahri, the governor of the central bank, confirmed that the new draft law is under review and could soon be adopted. The law is part of Morocco’s strategy to regulate cryptocurrencies more effectively in response to growing interest and adoption, despite the initial ban.
By late 2023, nearly 5% of Moroccans were using digital assets, highlighting the widespread use of cryptocurrencies, even in the face of prohibitive laws.
The move comes at a time of rising global interest in cryptocurrencies, with Bitcoin nearing the milestone of $100,000, further fueling global crypto discussions.
Morocco considering creating a CBDC
In addition to legalizing cryptocurrencies, the country is exploring the possibility of creating a central bank digital currency (CBDC).
The central bank’s governor revealed that the central bank is assessing how a CBDC could support public policy objectives, such as promoting financial inclusion, by offering a regulated and secure digital currency alternative.
The global momentum towards clearer crypto regulations
As Morocco moves closer to legalizing cryptocurrencies, the country joins a global wave of nations embracing digital assets.
The European Union’s Markets in Crypto-Assets Regulation (MiCA), expected to be implemented by the end of 2024, and the UK, which plans to introduce a comprehensive crypto regulatory framework in early 2025, are just some examples of nations that are creating regulatory clarity in the digital finance space.
These steps suggest a future where the digital finance landscape is more structured, secure, and conducive to innovation, providing clearer guidelines for investors and businesses in the crypto market.
Ripple CEO Brad Garlinghouse has become a key figure in discussions around the rumored “Crypto Czar” position in Donald Trump’s White House. Speculation about Garlinghouse’s potential role in shaping U.S. crypto policy gained momentum following comments from former Ripple executive Sean McBride.
This comes amid notable developments in the crypto industry, including the movement of 50 million XRP tokens valued at over $70 million between unidentified wallets.
Ripple CEO Brad Garlinghouse Pick for Donald Trump’s Crypto Czar?
The concept of a “Crypto Czar” role emerged as Donald Trump’s incoming administration considers creating a dedicated position to oversee crypto policy. Former Ripple executive Sean McBride hinted at the possibility of Ripple CEO Brad Garlinghouse stepping into this role. McBride shared his thoughts on X (formerly Twitter), saying,
“There is a real and growing possibility Brad Garlinghouse will be chosen as Trump’s new Crypto Czar.”
According to McBride, Garlinghouse may step down from his position as Ripple CEO if appointed. He also suggested that Ripple already has plans for leadership succession. This potential move aligns with Ripple’s recent resolution of its legal battle with the SEC, a development that may allow Garlinghouse to take on broader responsibilities.
Ripple, under Brad Garlinghouse’s leadership, has become a leading player in the blockchain and digital asset space, with its native token XRP seeing renewed attention from investors. The company has been preparing for an IPO and expanding its offerings, positioning itself for future growth.
Crypto Community Divided on Candidates for Crypto Czar
While Ripple CEO Brad Garlinghouse’s name is in the spotlight, other candidates are also being considered for the role. Chris Giancarlo, the former chairman of the Commodity Futures Trading Commission (CFTC), is viewed as a strong contender. Known as “Crypto Dad,” Giancarlo has consistently supported regulatory clarity for blockchain and digital assets. Reports suggest Giancarlo removed himself from consideration for SEC Chair, leaving him available for the crypto-specific role.
Another candidate is Brian Armstrong, CEO of Coinbase. Armstrong has received public support from Charles Hoskinson, founder of Cardano. Hoskinson emphasized Armstrong’s ability to navigate regulatory challenges and unite the crypto industry. Armstrong has reportedly met with Trump’s team to discuss crypto policy, fueling speculation about his potential appointment.
Former Comptroller of the Currency Brian Brooks and Ripple’s Brad Garlinghouse are also viewed as viable choices. Each candidate brings unique experience to the role, with Trump’s team said to be carefully vetting options before making a decision.
Ripple Timing Could Influence Garlinghouse’s Move
Garlinghouse’s potential transition to a government role comes at a pivotal time for Ripple. With its lengthy SEC legal battle largely resolved and plans for an IPO rumored, the company is in a strong position. Former Ripple executive McBride commented,
“I think the timing works for Brad and Ripple given some of the other things happening publicly and behind the scenes.”
Ripple has also been focused on product launches and potential mergers, signaling a period of growth and transformation. If Garlinghouse steps down, Ripple is expected to have a smooth leadership transition, ensuring continued progress in the rapidly evolving blockchain space.
Kelvin Munene Murithi
Kelvin is a distinguished writer with expertise in crypto and finance, holding a Bachelor’s degree in Actuarial Science. Known for his incisive analysis and insightful content, he possesses a strong command of English and excels in conducting thorough research and delivering timely cryptocurrency market updates.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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