A new cryptocurrency bill has been introduced on Capitol Hill, aiming to distribute oversight powers between two regulatory giants, the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).
Proposed by U.S. Representative John Rose from Tennessee, the Bridging Regulation and Innovation for Digital Global and Electronic Digital Assets bill seeks to create a Joint Advisory Committee dedicated to cryptocurrencies. This collaborative approach would combine the knowledge and expertise of both the SEC and CFTC.
Rep. Rose has criticized the current enforcement-heavy regulatory approach as ineffective. Instead of competing for oversight, he believes that the SEC and CFTC should work together with private entities to establish a framework for digital assets.
The BRIDGE Digital Assets Act suggests appointing 20 individuals from the cryptocurrency industry to the committee. These members would convene at least twice a year and serve two-year terms. Rep. Rose also emphasized the exploration of how decentralized technology could enhance traditional financial sectors while maintaining investor protection.
The interest in cryptocurrency legislation in Washington is evident through initiatives like the BRIDGE Digital Assets Act. Earlier this year, the U.S. House of Representatives passed a bipartisan bill that aimed to share regulatory responsibilities between the SEC and CFTC.
Although the White House expressed reservations about the Financial Innovation and Technology for the 21st Century Act, it signaled a willingness to engage in discussions regarding FIT 21 and other digital asset-related bills.
The SEC and CFTC have taken legal action against prominent players in the cryptocurrency space multiple times, highlighting their differing perspectives on how digital assets should be regulated.
For instance, the classification of Ethereum (ETH) underscores the regulatory disparity between the agencies. While SEC Chair Gary Gensler has not definitively categorized Ether as a security or commodity like Bitcoin (BTC), CFTC Chair Rostin Behnam has affirmed that ETH is a commodity falling under CFTC oversight.
As the conversation around cryptocurrency regulation continues to evolve, the BRIDGE Digital Assets Act represents a step towards establishing a cohesive regulatory framework for the burgeoning digital asset industry.
