A new crypto bill in Congress seeks to share oversight powers between the Securities and Exchange Commission and the Commodity Futures Trading Commission, two giant regulatory bodies.
U.S. Rep. John Rose of Tennessee introduced the Global Digital Assets and Digital Electronic Asset Interconnection and Innovation Act. Establishes A joint advisory committee focused on cryptocurrencies. This collaborative effort will draw on the knowledge and expertise of both the SEC and the CFTC.
According to Rep. Rose, the current approach to strict regulation has proven ineffective. Rather than fighting over oversight, the SEC and CFTC should work with private parties to build a framework for digital assets.
The BRIDGE Digital Assets Act proposes to include 20 non-governmental individuals from the cryptocurrency industry. The committee would meet at least twice a year and serve for two years. Rep. Rose also proposed exploring how decentralized technology could improve traditional financial sectors without compromising investor safety.
Washington is interested in encryption laws
The BRIDGE Digital Assets Act is another attempt by U.S. lawmakers to unify rules for cryptocurrency pools. In May, the U.S. House of Representatives passed a bipartisan bill that would split regulatory powers between the Securities and Exchange Commission and the Commodity Futures Trading Commission.
The White House has vetoed the so-called 21st Century Financial Innovation and Technology Act, but has signaled its willingness to negotiate FIT 21 and other digital asset bills.
Both the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC) have filed lawsuits against major cryptocurrency companies multiple times, although the two regulatory bodies differ on how to treat digital assets.
Assets like Ethereum (ETH) highlight the agencies’ different approaches. SEC Chairman Gary Gensler responded vaguely when asked whether Ethereum is a security or a commodity like Bitcoin (BTC). Conversely, Commodity Futures Trading Commission Chairman Rostin Behnam has stated categorically that Ethereum is a commodity and should be subject to CFTC oversight.