The Trump administration plans to empower the US Commodity Futures Trading Commission (CFTC) to regulate a significant portion of the digital asset market, Fox Business has reported.
This is part of a broader effort by President-elect Donald Trump and the Republican-controlled Congress to reduce the regulatory power exercised by the Securities and Exchange Commission over the digital asset sector under Biden and the regulator's outgoing chairman, Gary Gensler.
Currently, the CFTC is responsible for overseeing the US derivatives market.
Although the CFTC has authority to set market rules and enforce regulations like the SEC, it is often seen as having less stringent regulations due to the dominance of sophisticated institutional players in the derivatives market.