Media reports say that the incoming administration of U.S. president-elect Donald Trump is considering moving regulatory oversight of Bitcoin (BTC) and other cryptocurrencies away from the U.S. Securities and Exchange Commission (SEC).
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Instead, Trump might task the Commodity Futures Trading Commission (CFTC) with regulating crypto. Such a change would expand the CFTC’s authority over the $3.2 trillion digital asset market and take responsibility for crypto away from the SEC, which has sought to crackdown on digital coins and tokens.
Current SEC Chair Gary Gensler has faced criticism for classifying most cryptocurrencies, except Bitcoin, as securities and treating them the same as stocks when it comes to regulation. On the campaign trail, Trump promised to create a more crypto-friendly regulatory environment and has said he wants the U.S. to become the world’s “crypto capital.”
A Crypto Czar?
According to media reports, the Trump administration plans to give the CFTC broader authority to oversee digital assets, including regulating exchanges and spot markets for Bitcoin, Ethereum (ETH), and other digital assets.
Additionally, former CFTC Chair Chris Giancarlo is reportedly being considered for a new “Crypto Czar” role within the Trump administration. The Crypto Czar would develop policies and lead an advisory council related to cryptocurrencies.
Trump’s transition team is also exploring the creation of a Strategic Bitcoin Reserve to address inflation and economic uncertainty. The price of Bitcoin has risen 119% this year.
Is BTC a Buy?
Most Wall Street firms don’t offer ratings or price targets on Bitcoin, so instead we look at the cryptocurrency’s three-month performance. As one can see in the chart below, the price of BTC has risen 56.48% in the last 12 weeks, which is a strong showing.
