Congressman John Rose of Tennessee introduced BRIDGE Digital Assets Act One of the most significant legislative proposals with changes to the regulatory landscape for crypto assets in the United States.
The bill creates a joint advisory committee comprised of participants from the SEC and the CFTC, thus aiming to unify the sometimes conflicting regulatory rules currently in place between the two bodies regarding digital assets, which fall under the jurisdiction of securities and commodities.
Rose argues that the “regulation by enforcement” approach stifles innovation and drives investment abroad, requiring the United States to create a more conducive environment for the development of digital assets.
🚨 NEW: I have introduced the BRIDGE Digital Assets Act to create a joint advisory committee on digital assets between @SECgov and @CFTC.
The United States must allow digital assets to flourish because a strict approach based on regulation by law enforcement has not worked. https://t.co/Ty0VpvPgoj
— Congressman John Rose (@RepJohnRose) September 12, 2024
The role of the joint committee
It is proposed to form a joint advisory committee consisting of at least 20 participants from the private sector, including digital asset issuers, academic researchers and users. They will be able to provide insights and make recommendations on Digital Asset Regulation In terms of aspects such as decentralization, functionality and security.
The committee is expected to meet at least twice a year, and issue mandates and recommendations to both the SEC and the CFTC. This collaborative approach could bridge the regulatory gap to create a more cohesive approach to regulating digital assets, benefiting consumers and investors alike.
As of today, the market cap of cryptocurrencies stood at $2.05 trillion. Chart: TradingView.com
Addressing gaps in cryptocurrency regulation
One of the key features of the BRIDGE Digital Assets Act is that it aims to address confusion at the current regulatory level. Securities and Exchange Commission and Commodity Futures Trading Commission Investors interpret digital assets differently, creating confusion among companies and investors.
🚨SCOOP: Tennessee Republican Congressman @RepJohnRosewho sits on @Financial CenterThe US government has introduced a new bill called the “BRIDGE Digital Assets Act” that would create a joint advisory committee on digital assets between @SECGov And the @CFTC.
The purpose of…
— Eleanor Terrett (@EleanorTerrett) September 12, 2024
The bill calls for the formation of a joint committee through which the two bodies will work to enhance coordination between their regulatory frameworks with cooperation and clarity. The problem here is that such coordination would provide the opportunity to adopt a harmonized approach to regulating digital assets, which, if achieved, would enhance customer protection, as well as disclosure and reduce transaction costs.
Future impacts
The BRIDGE Digital Assets Act would represent a major change in how digital assets are regulated in the United States. It also includes a specific timeline for the bill’s implementation: The agencies, the SEC and CFTC, would adopt a joint charter to provide for the commission’s needs within 90 days and appoint commission members within 120 days, with the first meeting expected within 180 days of its passage.
This structured approach not only sets a framework for improving regulatory practices, but also points to new innovations in the digital asset space. As the crypto industry continues to evolve, the BRIDGE Act may be the key to unlocking such a balance between regulation and innovation—one that will ultimately benefit the U.S. economy and its position in the global digital asset landscape.
Featured image from Built In, chart from TradingView