Launchy Regulatory Roundup #16 - Trump Plans to Shift Crypto Oversight to CFTC

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Welcome to our 16th edition of the regulatory roundup. If you know anybody who would benefit from this content, please help us spread the word!

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President-elect Trump’s plan to give the CFTC more control over digital assets raises important questions about the SEC’s role and the future of crypto oversight. At the same time, industry leaders are speaking out about the struggles of debanking under "Operation Choke Point 2.0," highlighting the pressing need for fair access to financial services.

In Today's Edition:

• Headline: Trump Plans to Shift Crypto Oversight to CFTC 🇺🇲 

• Global Legal Roundup: EU’s Situation & UK’s crypto regime coming soon🚨 

• Case Study: Crypto Leaders Debanking Stories 💬 

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HEADLINE

Trump Plans to Shift Crypto Oversight to CFTC

State of play: President-elect Donald Trump’s administration is reportedly planning to empower the Commodity Futures Trading Commission (CFTC) with expanded oversight over digital assets deemed commodities, such as Bitcoin and Ether.

• This move would involve regulating crypto exchanges and spot markets, significantly reducing the SEC’s authority in the crypto industry.

• Outgoing SEC Chair Gary Gensler previously supported the CFTC’s authority over Bitcoin and labelled it a commodity.

• In March, the CFTC referred to Ether as a commodity in a lawsuit against Kucoin.

• Gensler's resignation will be effective on January 20, 2025, coinciding with Trump's inauguration.

• Trump’s broader crypto agenda includes creating a federal BTC reserve and appointing a White House crypto-specific role.

What’s Next: Trump's administration plans to formalize the CFTC’s expanded role, clarify crypto regulations, and appoint a White House crypto advisor. Gensler’s resignation paves the way for a more crypto-friendly SEC leadership.

Why it Matters: Shifting oversight to the CFTC could provide regulatory clarity for the crypto industry. However, it risks leaving gaps for assets not classified as commodities.

Our Take: Success will depend on balanced regulations that protect investors while encouraging market development.

GLOBAL LEGAL ROUNDUP

North & South America:

• 🇺🇲 Celsius to make second payout to creditors ‘soon.’

• 🇺🇲 US judge supports crypto-miner in Chinese ownership dispute.

• 🇺🇲 SEC nets record $8.2B in enforcement, mostly from Terraform Labs.

• 🇺🇲 Ex-CFTC Chris Giancarlo says crypto 'considerable priority' for Trump.

• 🇺🇲 Ripple drops another $25M into crypto PAC to sway congressional races.

• 🇺🇲 US court says Treasury 'overstepped' authority in Tornado Cash sanctions.

• 🇧🇷 Brazilian lawmaker proposes a national BTC reserve.

Europe:

• 🇬🇧 UK’s FCA aims for a crypto regime by 2026.

• 🇬🇧 Ex-Binance employee sues UK exchange, alleging bribery.

• 🇷🇺 Russia greenlights new tax bill for crypto mining and trading.

• 🇪🇺 Tether to end support for EURT stablecoin citing MiCA regulations.

• 🇪🇺 EU approves commissioners, including ones who will likely oversee crypto.

• 🇪🇺 Europe’s Coinbase users frustrated as MiCA forces sunset of USDC yield.

MENA:

• 🇲🇦 Morocco drafts regulations for crypto, central bank governor says.

• 🇮🇷 Central Bank of Iran promises CBDC launch, fintech to fight sanctions.

APAC:

• 🇹🇼 Taiwan fast-tracks stricter crypto AML rules to take effect Nov. 30.

• 🇭🇰 Hong Kong proposes tax breaks to attract crypto hedge funds, investors.

CASE STUDY

Crypto Leaders Share Debanking Stories

State of play: Following Marc Andreessen’s remarks on Joe Rogan’s podcast about 30 crypto founders being debanked, industry leaders have shared similar experiences tied to "Operation Choke Point 2.0."

• This alleged initiative aimed to cut crypto businesses off from banking services, with some claiming government pressure on banks under the Biden administration.

• Executives from Gemini, Kraken, Custodia Bank, and others detailed account closures and struggles to maintain banking relationships.

• JPMorgan allegedly cited crypto-related income as grounds for account closures.

• Trump has pledged to end "Operation Choke Point 2.0" and introduce a crypto-friendly regulatory framework.

• Critics note the need to balance addressing scams with fair banking access for legitimate businesses.

Our Take: Trump's pledge to end "Operation Choke Point 2.0" offers hope for fairer crypto regulations, but systemic challenges persist. Balancing fraud prevention with fair banking access is key to fostering trust and innovation.

Take a peek at our referral reward at the bottom of this issue. Share this newsletter and receive our comprehensive database of crypto regulations around the world👇

NOTEWORTHY READS & MEME

• Balaji’s read on Zatoshi and Zethereum.

• Michael Nadeau’s read on crypto companies’ classes of shares.

• Dennis Porter’s read on Rogan & Andreessen’s conversation on crypto.

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Disclaimer: All the information presented in this publication and its affiliates is strictly for educational purposes only. It should not be construed or taken as financial, legal, investment, or any other form of advice.