Following Trump’s Directive, the CFTC and SEC Request Public Feedback on Proposed Rulemaking
The Commodity Futures Trading Commission has begun the process of establishing a federal regulatory framework for cryptocurrency markets. It follows a similar draft proposal by the Securities and Exchange Commission. Both proposed rules are now available for public review and comment.
The crypto industry is one of the most active in Washington, DC, not only in terms of financing campaign activity in the run-up to the midterm elections, but also in shaping policy.
President Trump is actively engaged in promoting the cryptocurrency industry. He hosted crypto and stock trading executives at the White House ahead of the CFTC meeting in August. Attendees included Coinbase CEO Brian Armstrong, Robinhood CEO Vlad Tenev, Ripple CEO Brad Garlinghouse, Kraken co-CEO Arjun Sethi, and Gemini CEO Tyler Winklevoss, among others.
Trump Crypto Earnings
Trump has also rolled out a personalized memecoin, a $TRUMP token that he promoted at a special luncheon at his Mar-a-Lago estate in April. He is expected to host another event for memecoin holders on November 22 at the Trump National Golf Club in Northern Virginia. Last year alone, Trump raised at least $1.4 billion in revenue from token sales, memecoin licensing royalties, and World Liberty Financial equity, wallet, and platform operations, according to his financial disclosure report released in June.
CFTC, SEC Regulations Proposed
“We have statutory authority, and we’re going to use it. The SEC is doing the same,” said CFTC Chairman Michael Selig in an interview with CNBC.
In his official announcement, Selig said the commission was acting on President Trump’s directive to propose a market structure for crypto, part of the administration’s goal of making the United States the “crypto capital of the world.” He said the proposed framework is designed to prevent fraudulent schemes rather than “only prosecute after the fact.”
The SEC, meanwhile, has also proposed new rules. They would govern how investment advisers and regulated funds can hold crypto assets. SEC Chairman Paul Atkins said the plan is to create “a compliant pathway where none existed before” for crypto investments. It would remove regulatory barriers that restrain financial advisers from recommending crypto assets.
The actions by the CFTC and SEC come as the CLARITY Act, which would establish a broader legal framework for digital assets, has stalled in the Senate.
