A new bill has been introduced in Congress that proposes the establishment of a joint committee between the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) to review and regulate digital assets.
The bill, titled the “BRIDGE” Digital Assets Act (Bridging Regulation and Innovation for Digital Global and Electronic Digital Assets), was introduced by Representative John Rose, a member of the House Financial Services Committee.
According to Rose, the current “sanctions-based regulation” approach to cryptocurrencies is ineffective and drives innovation offshore. “The Joint Advisory Committee on Digital Assets will provide a framework for government and the private sector to collaborate in shaping a successful regulatory environment for digital assets,” the Tennessee-based Republican said in a statement.
While the SEC and CFTC have been active in bringing charges against major crypto firms, they have disagreed on key issues such as the need for new legislation and how to classify certain cryptocurrencies like Ethereum. The joint committee proposed in Rose’s bill aims to address these differences and create a cohesive strategy for regulating the digital asset space.
The committee will include 20 non-governmental partners representing a variety of interests in the digital asset sector, serving two-year terms. The committee will meet at least twice a year to make recommendations on rules and regulations for the crypto sector. The committee’s focus areas include exploring decentralization, improving market efficiency, and ensuring consumer protection.
*This is not investment advice.