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With Donald Trump stepping in as the 47th U.S. president, a new wave of shifts has begun to reshape the nation\u2019s regulatory landscape, especially within the crypto industry. <\/p>\n
While the SEC continues to oversee areas tied to securities, the CFTC\u2019s influence appears to be diminishing, limited mostly to derivatives and spot markets. <\/p>\n
This imbalance in regulatory authority has sparked fresh debate.<\/p>\n
Former CFTC Chair issues warning<\/strong><\/p>\n Former CFTC<\/a> Chair Rostin Behnam recently warned that without expanded powers for the agency, the crypto sector could remain largely unregulated. <\/p>\n Speaking to Bloomberg<\/a> on 28th May, Behnam echoed a key industry stance, affirming that cryptocurrencies should be treated as commodities.<\/p>\n He said,\u00a0<\/p>\n \u201cIf you look at existing law, the few largest tokens are commodities, which means the SEC does not have jurisdiction over those tokens, which include Bitcoin and Ether.\u201d<\/p>\n<\/blockquote>\n Behnam emphasized that neither the SEC nor the CFTC currently possesses the legal framework needed to fully regulate the crypto industry.<\/p>\n The SEC, limited by its mandate, cannot oversee commodities, and the CFTC focuses only on derivatives, creating a significant gap in regulating spot markets for digital assets.<\/p>\n Behnam warned that unless the CFTC gains new authority over non-security digital asset markets, the sector will remain largely unregulated.<\/p>\n What caused Behnam to come up with this?<\/strong><\/p>\n This coincided with the Trump family\u2019s involvement in crypto ventures like World Liberty Financial, memecoins, and a stablecoin project.<\/p>\n\n