Lawrence Damilola
Tennessee Congressman John Rose has introduced the “BRIDGE Digital Assets Act,” proposing the creation of a joint digital asset advisory committee between the U.S. Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC).
The bill aims to harmonize regulations for digital assets, which have faced varying interpretations by the two regulatory bodies. Also, the proposed committee would consist of 20 private sector members, including digital asset issuers, academic researchers, and users. The purpose of this committee, according to Rose, would be to provide both agencies with guidance on their respective rules, regulations, and policies related to digital assets. āThe United States must allow digital assets to thrive because the heavy-handed, regulation-by-enforcement approach isnāt working,ā Rose stated on X, referring to the current regulatory landscape.
Rose’s bill addresses the ongoing regulatory conflict between the SEC and the CFTC, where the SEC has viewed certain digital assets as securities, while the CFTC treats them as commodities. This divergence has created an uncertain regulatory environment for digital assets. The congressman believes that establishing a joint advisory committee will help align the views of both agencies on digital asset oversight.
āThe Joint Advisory Committee on Digital Assets will provide a framework for the government and private sector partners to cooperate on a path toward success for the regulatory landscape of digital assets and private sector participants,ā Rose added.Ā
He further commented that the current approach of regulating through enforcement is not fostering growth and is instead encouraging investment to move overseas.
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šØ NEW: I've introduced the BRIDGE Digital Assets Act to establish a Joint Advisory Committee on digital assets between the @SECgov and @CFTC.
— Congressman John Rose (@RepJohnRose) September 12, 2024
The United States must allow digital assets to thrive because the heavy-handed, regulation-by-enforcement approach isn't working. https://t.co/Ty0VpvPgoj
The bill outlines that the joint committee will focus on examining the potential of digital assets to improve the efficiency of financial market infrastructures. Areas of review will include customer protections, increased transparency regarding customer funds, reduced transaction costs, and better access to financial market services. The committee would be required to meet at least twice a year to deliver its findings and recommendations to both the SEC and CFTC.
āThe purpose of the committee, Iām told, would be for the industry to provide both agencies with advice on their respective rules, regulations, and policies relating to digital assets,ā noted Eleanor Terrett, a Fox Business reporter who first flagged the details of the bill on X.
šØSCOOP: Republican Tennessee Congressman @RepJohnRose, who sits on the @FinancialCmte, is introducing a new bill called the āBRIDGE Digital Assets Actā that would establish a Joint Advisory Committee on digital assets between the @SECGov and the @CFTC.
The purpose of theā¦Related: Pure Fantasy to Delay: Lummis Joins White House CLARITY Push
— Eleanor Terrett (@EleanorTerrett) September 12, 2024
Rose emphasized that the collaboration would provide āa framework for the government and private sector partnersā to work together on digital asset regulation.
In May, a bipartisan bill known as FIT21 was approved by the U.S. House of Representatives, dividing regulatory authority between the SEC and CFTC. Yet, SEC chairman Gary Gensler criticized the legislation, labeling it as posing an “immeasurable risk” to investors.
The Bridge Digital Assets Act is seen as a response to ongoing debates over how digital assets should be regulated in the U.S. and whether the SEC and CFTC can effectively work together under a unified framework.
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LAWRENCE
Lawrence is a cryptocurrency journalist covering blockchain developments and digital assets.
