The US House of Representatives has proposed a bill to establish an interagency committee to create a clearer legal framework for the digital asset market and resolve disagreements between regulators on cryptocurrencies.
On September 12, Representative John Rose of the House Financial Services Committee proposed the “BRIDGE Digital Assets Act,” which would establish a Joint Advisory Committee on Digital Assets.
The new commission will serve as a bridge between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) to jointly research and advise on regulatory issues for the rapidly growing digital asset market.
Congressman Rose believes that current regulatory practices have shown many limitations, even pushing technological innovation and investment out of the United States. Close cooperation between the government and the private sector through this committee is expected to promote sustainable market development.
Resolving the Dispute Between the SEC and CFTC
In recent years, the SEC and CFTC have had disagreements over how to regulate cryptocurrencies, leading to both agencies bringing charges against major cryptocurrency companies. This lack of consensus has created uncertainty and hindered market growth, making it difficult for businesses and investors to stay in compliance.
The BRIDGE Act proposes the creation of a 20-member commission representing digital asset industry stakeholders, including issuers, users, experts, and analysts, with a two-year term. The commission would meet at least twice a year to discuss issues related to decentralization, market efficiency, and consumer protection. The commission’s recommendations would help the SEC and CFTC refine and improve regulations for digital asset markets.
The creation of the Joint Advisory Committee on Digital Assets is expected to provide a more comprehensive and effective legal framework for the cryptocurrency industry in the US. However, the BRIDGE bill still has to go through the review and approval process of Congress before officially becoming law.
