Tennessee Representative John Rose, a member of the Financial Services Committee, is spearheading a fresh crypto legislation aimed at transforming how digital assets are regulated in the U.S. This proposed bill, known as the BRIDGE Digital Assets Act, looks to set up a Joint Advisory Committee on Digital Assets comprising individuals from the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).
The bill’s main objective is to foster regulatory coherence between the SEC and CFTC, which currently handle distinct aspects of crypto oversight. The proposed committee seeks to ascertain ways to measure different facets of digital assets like decentralization, functionality, and security. Congressman Rose argued against the current enforcement-focused regulatory approach, which he believes hampers innovation and drives investments overseas.
Rose stated, “The Joint Advisory Committee on Digital Assets aims to facilitate collaboration between the government and private sector entities to enhance the regulatory framework for digital assets and participants from the private sector.” The bill stipulates that the committee must include a minimum of 20 private sector members, including digital asset issuers, researchers, and users, who will act as advisors to the SEC and CFTC in developing effective crypto regulations while also fostering innovation.
In response to mounting frustration in the crypto sector over regulatory ambiguities, the BRIDGE Digital Assets Act is positioned as a remedy to bridge the regulatory gap between the SEC and CFTC. The Joint Advisory Committee’s focus will be on aligning policies, exploring blockchain technology applications, and bolstering financial market infrastructure by enhancing customer safeguards, transparency, reducing transaction costs, and broadening financial service access through digital assets.
Should the bill pass, it could signify a noteworthy milestone in crypto regulation. Nevertheless, ongoing issues within the SEC, such as Chairman Gary Gensler facing allegations of illegal hiring, could potentially impede the collaboration prospects between the SEC and CFTC.