“Hold up, let Don cook…”

Don Wilson isn’t here to make friends, and he definitely isn’t here to play nice with Washington’s two favorite bureaucratic punching bags: the SEC and CFTC. Nope, the founder of DRW Holdings, one of the most powerful trading firms on the planet, just rolled up to the regulatory playground with a flamethrower and a six-pack of dynamite. His message? Burn it all down. Start over. Build something that actually works.

(Source: Giphy)

In a recent interview, Wilson dropped what can only be described as a regulatory nuke, calling for the outright abolition of both the Securities and Exchange Commission and the Commodity Futures Trading Commission. “Friction between the SEC and the CFTC is just an ongoing counterproductive force,” Wilson stated, while also putting the nail in the coffin with, “It’s time to just start from scratch, to actually get rid of both the CFTC and the SEC and create an entirely new regulator.”

Now this isn’t just a bold take—it’s the kind of slap in the face that makes the financial world look as if someone had pissed in their cheerios. But, when you look at the dumpster fire that is U.S. financial regulation, you start to wonder if Wilson might be onto something. Especially since both agencies have been in a hot mess lately. 

(Source: Financial Post) 

You see, these two regulatory bodies are supposed to oversee different parts of the financial markets—the SEC handles securities, while the CFTC deals with commodities and derivatives. Sounds simple, right? Wrongo. The problem is that financial instruments have evolved way faster than the bureaucratic dinosaurs tasked with regulating them. Crypto, for example, is the mutant lovechild of securities and commodities, and neither agency can agree on who gets to call it theirs. It’s like a messy divorce, with both sides fighting for custody of the weird kid nobody really understands.

And right now, Wilson’s no stranger to this chaos. His crypto arm, Cumberland, recently got slapped with a lawsuit from the SEC for allegedly operating as an unregistered securities dealer. Meaning, this isn’t Wilson’s first rodeo with regulators, either—he spent years locked in a legal cage match with the CFTC over market manipulation allegations, eventually walking away victorious in 2018.

(Source: SEC) 

Plus let’s not forget outgoing SEC Chair Gary Gensler, who’s been lobbing lawsuits at the crypto industry like he’s trying to set a new Guinness World Record for most bridges burned. Coinbase, Kraken, Uniswap—you name it, Gensler’s probably tried to sue it. For instance, Wilson described Gensler’s approach as “a bunch of counterproductive litigation, almost kind of like he just wanted to get some of these things out there on his way out the door [leaving] some nice presents behind for the next SEC chair to unwind.” Ooof.

Which is why Wilson's solution is to kill them both. Naturally, crypto players are loving this. For years, they’ve been stuck in regulatory purgatory, with the SEC and CFTC bickering over who gets to make their lives miserable. A unified regulator could finally bring some clarity to the industry—or at least stop the turf wars.

(Source: Giphy) 

But, but, but… still, not everyone is convinced.  Critics argue that creating a new regulator would be a logistical nightmare, like trying to fix a plane while it’s flying. And let’s be real: Washington isn’t exactly known for its ability to get big things done. But Wilson’s right about one thing—the current system isn’t working.

As Peter Atwater, an economics professor at William & Mary, put it, “There is a strong argument to be made for an integrated financial regulator, as the current distinction is missing the increasing convergence of financial instruments and commodities.” In other words, the lines between securities and commodities are blurrier than ever, and the SEC-CFTC divide just doesn’t make sense anymore.

(Source: Giphy) 

At the same time, the political winds are shifting toward deregulation, especially with Trump poised to take office again. Gensler’s resignation, effective the day Trump gets sworn in, could mark the beginning of a more hands-off approach to financial oversight. Whether that’s a good thing depends on how much faith you have in Wall Street to police itself (spoiler: not much).

(Source: AP) 

In the end, it’s clear that Don Wilson isn’t here to play nice or make incremental changes. He’s here to flip the friggin ‘table and start over. Whether his vision becomes reality is anyone’s guess, but one thing’s for sure: the SEC and CFTC can’t keep limping along like this forever. 

So with that said, is Wilson’s plan radical? Absolutely. Necessary? Maybe. Either way, it’s the kind of shake-up the financial world desperately needs—and the kind that makes regulators sweat. And honestly, maybe it’s about time someone lit a fire under their desks. In the meantime, only time will tell how this story ends but regardless, I hope you have a fantastic Friday. As always, stay safe and stay frosty, friends! Until next time…

P.S. It’s Black Friday, and if you miss out on this 90% OFF deal then well, you probably weren’t cut out for these absolute FIRE alerts anyway. Spoiler: Today’s alert popped 130% BEFORE the markets even opened. 

Stocks.News does not hold positions in companies mentioned in the article.