From SEC to CFTC: Bitcoin's New Boss?

The Trump administration is considering empowering the CFTC to regulate digital assets.

Danielle du Toit
November 27, 2024

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The Trump administration is considering empowering the Commodity Futures Trading Commission (CFTC) to regulate digital assets.

The proposed framework will shift regulatory authority for digital assets like Bitcoin and Ethereum, which are widely considered commodities, from the SEC to the CFTC.
The CFTC's revamped role could include oversight of crypto exchanges and spot markets handling assets classified as commodities.
One of the main goals of the Trump administration's plan is to streamline oversight, and grant the CFTC greater prominence. This will reduce the SEC's role outside its traditional focus on securities.

The likelihood of Bitcoin (BTC) surpassing $100,000 rose to 45%, despite its recent price pullback.

The probability of Bitcoin jumping past $100,000 increased to 45% (up from 34% last week). Bitcoin also has a 4% chance of surpassing $150,000, according to Nick Forster.
Data also suggests Bitcoin has a 68% chance of retracing to $81,493 by the end of 2024, while the probability of dropping below $70,000 is just 5%.
Increased demand for Bitcoin options, especially calls, indicates that there is strong market optimism for price gains.

A three-judge panel found the Treasury’s sanctions against the crypto mixer’s immutable smart contracts were unlawful.

A Fifth Circuit Appeals Court ruled that the U.S. Treasury's OFAC exceeded its authority by sanctioning Tornado Cash’s immutable smart contracts, and stated that they are not property under the IEEPA as they cannot be controlled or owned.
Tornado Cash was sanctioned in August of 2022 for allegedly facilitating the laundering of more than $7 billion in cryptocurrency since 2019.
After the sanctions, six Tornado Cash users, supported by Coinbase, filed a lawsuit against the Treasury.

The goal of the ETF is to give investors balanced exposure to the two largest cryptos in the world in an easy-to-access format.

NYSE Arca filed with the SEC to list a new ETP from Bitwise that will provide balanced exposure to Bitcoin (BTC) and Ethereum (ETH).
The product will offer investors an accessible way to invest in the two largest cryptocurrencies, and trading is expected to begin soon after SEC approval.
The SEC's decision about the ETF is still uncertain as there may be potential delays influenced by upcoming leadership changes. Chair Gary Gensler is set to step down as SEC Chair on Jan. 20.

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