The Trump administration is planning to expand the authority of the Commodity Futures Trading Commission (CFTC) to regulate the digital asset market. The proposal would give the CFTC oversight of spot markets for digital commodities, such as Bitcoin and Ethereum, which make up about 70% of the global crypto market. This shift in regulation aims to replace the current enforcement-heavy approach with a more innovation-friendly framework. Supporters argue that the CFTC's expertise in derivatives markets makes it well-suited to regulate digital commodities. However, Congressional approval and increased funding would be necessary for the CFTC to take on this expanded role. Some industry experts and traditional CFTC constituencies express concerns about potential spillover effects on other commodity markets. Legislative language would need to be precise to ensure existing oversight structures are not disrupted.



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