The CFTC may struggle to regulate cryptocurrency effectively due to vacancies in its leadership. Currently, there is one vacant chair and more commissioners are expected to leave soon. This situation arises as Congress introduces the Clarity Act, aiming to define digital commodities and grant the CFTC regulatory authority over crypto. However, without a full complement of commissioners, the agency's ability to issue regulations or enforce actions is hindered. The ongoing gridlock means that controversial matters requiring majority votes cannot be addressed. The recent departures of two commissioners raise concerns about breaking this deadlock, especially with the already split commission of two Democrats and two Republicans. The Trump administration's slow nomination process for a new chair contributes to this uncertainty. While some in the crypto industry appreciate the current lack of aggressive enforcement, the long-term impact of diminished regulatory capacity poses risks for the market's future.

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