New bill calls for SEC and CFTC collaboration on crypto governance

A new bill introduced in the U.S. House of Representatives calls for enhanced collaboration between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) on cryptocurrency regulation.

Republican Congressman John Rose of Tennessee has put forward the “Bridging Regulation and Innovation for Digital Global and Electronic Digital Assets Act.”

According to Fox Business Journalist Eleanor Terrett, this legislation aims to establish a Joint Advisory Committee on digital assets. This will bring together the SEC and CFTC in a unified approach to crypto governance.

????SCOOP: Republican Tennessee Congressman @RepJohnRose, who sits on the @FinancialCmte, is introducing 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 purpose of the…

— Eleanor Terrett (@EleanorTerrett) September 12, 2024

The crypto committee would provide advice on various aspects

The proposed committee will include 20 non-governmental stakeholders representing various interests within the cryptocurrency space.

These members would be tasked with providing both agencies advice on their rules, regulations, and policies relating to crypto.

Congressman Rose, who serves on the House Financial Services Committee, stated the need for a new approach to crypto regulation. He stated, “The current heavy-handed, regulation-by-enforcement approach isn’t working and is instead encouraging investment in this key innovation overseas.”

BRIDGE Digital Assets Act states several key responsibilities

The BRIDGE Digital Assets Act states several important responsibilities to the proposed committee. These include advising the SEC and CFTC on crypto rules and policies and promoting regulatory harmonization between the two agencies.

Additionally, the committee will examine methods to measure and quantify key aspects of digital assets and explore how blockchain technology can enhance financial market infrastructure.

The bill also mandates that the SEC and CFTC review the committee’s findings and recommendations and issue public statements in response within three months.

This proposed bill comes at a time when the cryptocurrency industry has been calling for clearer regulatory guidelines. The current “regulation-by-enforcement” approach has been criticized for stifling innovation in the U.S. crypto sector.

Rose stated that the committee aims to develop a more collaborative approach to crypto governance. He also added that the joint committee will help in cooperating for the success of the crypto regulatory landscape.