Tennessee Congressman John Rose, a member of the Financial Services Committee, is introducing a new cryptocurrency bill aimed at reshaping digital asset regulation in the United States.
The proposed bill is titled the “Bridging Regulation and Innovation for Global and Electronic Digital Assets Act” or “BRIDGE Digital Assets Act.” It seeks to establish a joint advisory committee on digital assets with representatives from the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).
Contents of the new cryptography bill
The Joint Advisory Committee will be tasked with providing advice on rules, regulations, and policies regarding digital assets. According to the bill’s text, its goal is to promote regulatory alignment between the SEC and the CFTC. The two agencies currently oversee different aspects of cryptocurrency regulation.
The committee proposed in the cryptocurrency bill will therefore be tasked with finding ways to quantify certain aspects of digital assets. These include decentralization, functionality, and security. Additionally, Congressman Rose said that the current “regulation by enforcement” strategy is not working and instead favors innovation and overseas investment. Additionally, earlier today, trading platform eToro reached an agreement with the Securities and Exchange Commission to pay $1.5 million, which many attribute to stifling innovation.
🚨SCOOP: A Republican Congressman from Tennessee @RepJohnRosewho is sitting on the @FinancialCmteintroduces a new bill called the “BRIDGE Digital Assets Act” that would establish a joint advisory committee on digital assets between the @SECGov and the @CFTC.
The goal of the…
— Eleanor Terrett (@EleanorTerrett) September 12, 2024
“The Joint Advisory Committee on Digital Assets will provide a framework for cooperation between government and private sector partners to ensure the success of the regulatory landscape for digital assets and private sector players,” Mr. Rose said. He further stressed the need for collaboration between government and private entities for better regulation.
Additionally, the cryptocurrency bill calls for the committee to consist of at least 20 members from the private sector. Members will include digital asset issuers, academic researchers, and digital asset users. These stakeholders would serve as advisors to both the SEC and CFTC on how best to enforce cryptocurrency regulation while encouraging innovation.
Addressing current regulatory gaps
The BRIDGE Digital Assets Act is positioned as a response to the cryptocurrency industry’s growing frustration with the lack of clarity and consistency in the regulation of digital assets. The SEC and CFTC have often clashed over jurisdiction, with the former treating certain cryptocurrencies as securities and the CFTC treating them as commodities.
The Joint Advisory Committee aims to bridge this regulatory gap. It will ensure that agencies align on key policies. In addition, the committee will also explore the potential of blockchain technology and distributed ledger systems to improve financial market infrastructure.
The bill aims to improve customer protection, increase transparency, and reduce transaction costs. It will also expand access to financial services through digital assets. The cryptocurrency bill requires the SEC and CFTC to jointly adopt a charter for the committee within 90 days of the bill’s enactment.
Members would be appointed within 120 days and the committee would hold its first meeting within 180 days. Meetings would be held at least twice a year, with additional sessions as needed at the request of either committee.
If passed, the BRIDGE Digital Assets Act could mark a significant step toward regulating cryptocurrencies. However, the SEC is currently under intense scrutiny, with its chairman Gary Gensler accused of illegal hiring. This uncertainty could negatively impact potential collaboration between the SEC and the CFTC.
Kelvin Munene Murithi
Kelvin is a renowned writer, crypto and finance expert with a Bachelor of Science in Actuarial Science. Known for his incisive analysis and insightful content, he is fluent in English and excels in conducting in-depth research and delivering timely updates on the cryptocurrency market.
Disclaimer: The content presented may include the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or publication does not assume any responsibility for your personal financial losses.
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