Tennessee Congressman John Rose, a member of the Financial Services Committee, is preparing to introduce a fresh crypto bill with the aim of reshaping the oversight of digital assets in the United States.
Named the “Bridging Regulation and Innovation for Digital Global and Electronic Digital Assets Act” or the “BRIDGE Digital Assets Act,” the proposed bill is designed to establish a Joint Advisory Committee on Digital Assets comprising representatives from both the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).
The key focus of the new crypto bill is to enhance regulatory collaboration between the SEC and CFTC, as these agencies currently manage different aspects of crypto regulation. The proposed committee within the bill will be entrusted with identifying methods to quantify various elements of digital assets, such as decentralization, functionality, and security.
Congressman Rose highlighted that the existing approach of “regulation-by-enforcement” is ineffective and may be pushing innovation and investment overseas. He pointed out a recent incident where the eToro trading platform settled with the SEC, paying a hefty sum, which many believe hindered innovation.
According to Rose, the Joint Advisory Committee on Digital Assets aims to create a platform for government and private sector cooperation in developing an effective regulatory framework for digital assets, emphasizing the importance of collaboration between the two sectors for improved regulation.
The bill also requires the committee to include at least 20 private sector members representing digital asset issuers, academic researchers, and users of digital assets. These individuals would serve as advisors to both the SEC and CFTC, offering insights on applying crypto regulation effectively while promoting innovation.
The BRIDGE Digital Assets Act is intended to address the current dissatisfaction within the crypto industry regarding the ambiguity and inconsistency in digital asset regulation. By bridging the regulatory gap between the SEC and CFTC, the bill aims to ensure alignment on essential policies and explore the potential of blockchain and distributed ledger technologies to enhance the financial market infrastructure.
If passed, the establishment of the Joint Advisory Committee could serve as a significant advancement in crypto regulation. However, uncertainties surrounding the SEC, particularly Chairman Gary Gensler facing illegal hiring allegations, may impede the potential collaboration between the SEC and CFTC.