A new crypto bill on Capitol Hill seeks to share oversight powers between the SEC and CFTC, two regulatory juggernauts.
Introduced by U.S. Representative John Rose of Tennessee, the Bridging Regulation and Innovation for Digital Global and Electronic Digital Assets would establish a Joint Advisory Committee focused on cryptocurrencies. This collaborative effort would enlist knowledge and expertise from both the Securities and Exchange Commission and the Commodity Futures Trading Commission.
According to Rep. Rose, the current “heavy-handed” regulation-by-enforcement style has proved ineffective. Rather than tussle for oversight, the SEC and CFTC should cooperate with private actors to build a digital asset framework.
The BRIDGE Digital Assets Act proposes including 20 nongovernmental individuals from the cryptocurrency industry. The committee would meet at least biannually and serve two-year terms. Rep. Rose also suggested exploring how decentralized technology could improve traditional financial sectors without jeopardizing investor safety.
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Washington interested in crypto laws
The BRIDGE Digital Assets Act is yet another attempt by American lawmakers to standardize rules for the crypto complex. In May, the U.S. House of Representatives passed a bipartisan bill sharing regulatory powers between the SEC and CFTC.
The White House objected to the so-called Financial Innovation and Technology for the 21st Century Act, but noted its willingness to negotiate on FIT 21 and other digital asset bills.
Both the CFTC and SEC have sued crypto heavyweights multiple times, although the two regulators disagree on how digital assets should be treated.
Assets like Ethereum (ETH) highlight the agencies’ different approaches. SEC Chair Gary Gensler has responded vaguely when asked if Ether is a security or a commodity like Bitcoin (BTC). Conversely, CFTC Chair Rostin Behnam has categorically stated that ETH is a commodity and should fall under CFTC oversight.
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