The recent introduction of the Bridge Digital Assets Act by Tennessee Republican Congressman John Rose has sparked discussions within the digital asset industry. The proposed bill aims to establish a CFTC-SEC joint digital asset advisory committee, consisting of 20 private sector members including issuers, academic researchers, and users. This move seeks to streamline digital asset regulations and promote regulatory harmonization between the US Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).
According to Fox Business reporter Eleanor Terrett, the committee will provide advice to both agencies on their rules, regulations, and policies related to digital assets. Congressman John Rose emphasized the importance of allowing digital assets to thrive in the United States, criticizing the current heavy-handed regulatory approach that he believes hinders innovation and drives investment overseas.
Rep. Rose highlighted the need for a collaborative framework between the government and private sector partners through the Joint Advisory Committee on Digital Assets. This framework aims to create a path towards success in the regulatory landscape for digital assets and private sector participants.
Bill Aims to Address Digital Asset Regulatory Gaps
The introduction of the Bridge Digital Assets Act comes at a time when the regulatory uncertainty surrounding cryptocurrencies has made them less appealing to investors. The ongoing clash between the SEC and CFTC, with differing views on the classification of digital assets, further complicates the regulatory environment.
In an attempt to provide clarity and consistency in crypto regulation, the proposed bill seeks to bridge the gap by examining the efficiency enhancements digital assets can bring to financial market infrastructure. This includes improved customer protections, transparent handling of customer funds, reduced transaction costs, and increased access to financial services.
While the US House of Representatives passed the FIT21 bill in May, aiming to share regulatory powers between the SEC and CFTC, SEC Chair Gary Gensler expressed concerns about the bill's potential risks to investors. In contrast, the Bridge Digital Assets Act focuses on establishing a joint committee that will convene at least twice a year to deliver findings and recommendations to the regulatory agencies.
