Tennessee Representative John Rose, a member of the Financial Services Committee, is spearheading a fresh crypto legislation designed to revamp the oversight of digital assets within the United States. The bill, known as the “BRIDGE Digital Assets Act,” aims to establish a Joint Advisory Committee on Digital Assets comprising members from the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).
This proposed legislation focuses on fostering regulatory cohesion between the SEC and CFTC, which currently have distinct roles in supervising crypto regulations. The bill outlines the committee’s responsibility to assess various aspects of digital assets, such as decentralization, functionality, and security. Congressman Rose highlighted the inadequacies of the current “regulation-by-enforcement” approach, emphasizing its detrimental impact on innovation and investment domestically. As a result, the recent $1.5 million settlement between the eToro trading platform and the SEC is believed to stifle innovation further.
Rose envisions the Joint Advisory Committee as a collaborative platform for government and private sector entities to navigate the evolving regulatory landscape surrounding digital assets. The legislation mandates the committee to comprise a minimum of 20 private sector members, including digital asset issuers, academic experts, and users of digital assets. These stakeholders would advise the SEC and CFTC on implementing effective crypto regulations while fostering innovation.
The BRIDGE Digital Assets Act aims to address the existing discord in digital asset regulation by bridging the jurisdictional disparities between the SEC and CFTC. By aligning key policies and exploring avenues for leveraging blockchain technology and distributed ledger systems, the committee seeks to enhance financial market infrastructure. It emphasizes improving customer safeguards, promoting transparency, reducing transaction costs, and broadening access to financial services via digital assets.
If passed, this legislation could mark a pivotal stride in crypto regulation. However, uncertainties surrounding SEC Chairman Gary Gensler’s alleged illegal hiring practices may impede collaboration between the SEC and CFTC. The bill necessitates the SEC and CFTC to develop a charter for the committee within 90 days of enactment, appoint members within 120 days, and convene the initial meeting within 180 days. Scheduled biannual meetings, along with additional sessions as necessary, would facilitate ongoing coordination between the two commissions.