Bitrabo Editorial
Tennessee Congressman John Rose has proposed the “BRIDGE Digital Assets Act”, which aims to significantly alter the regulatory framework for cryptocurrencies within the United States.
This legislation intends to establish a Joint Advisory Committee featuring members from both the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). The goal is to reconcile the conflicting regulations that currently exist between these two agencies regarding digital assets, which are categorized under both securities and commodities.
Rose asserts that the current “regulation-by-enforcement” method is detrimental, hindering innovation and pushing investment to other countries. He emphasizes the necessity for the U.S. to cultivate a more supportive atmosphere for digital asset growth.
ANNOUNCEMENT: I’ve proposed the BRIDGE Digital Assets Act to create a Joint Advisory Committee on digital assets between the @SECgov and @CFTC.
We must allow digital assets to flourish since the current heavy-handed regulation isn’t effective.
— Congressman John Rose (@RepJohnRose) September 12, 2024
Functions of the Joint Committee
The proposed Joint Advisory Committee would consist of at least 20 members from the private sector, including digital asset creators, researchers, and users. This diverse group is expected to provide valuable insights and suggestions on digital asset regulations focusing on key areas like decentralization, functionality, and security.
The committee will convene twice annually, with findings and recommendations required to be shared with both the SEC and CFTC. This collaborative initiative aims to fill the regulatory void, fostering a cohesive framework for the governance of digital assets that benefits consumers and investors alike.
Resolving Regulatory Uncertainties
A major objective of the BRIDGE Digital Assets Act is to clarify the current regulatory landscape, which has been muddied by differing interpretations of digital assets by the SEC and CFTC. This disparity has led to confusion for both investors and businesses.
EXCLUSIVE: Congressman @RepJohnRose, who serves on the @FinancialCmte, is introducing the “BRIDGE Digital Assets Act” to set up a Joint Advisory Committee involving the @SECGov and @CFTC.
The aim of the…
— Eleanor Terrett (@EleanorTerrett) September 12, 2024
This bill advocates for a unified committee approach in which both agencies cooperate to clarify and align their regulatory frameworks. Achieving this alignment could enhance customer protection, improve transparency, and potentially decrease transaction costs.
Future Perspectives
The BRIDGE Digital Assets Act may signify a pivotal shift in U.S. digital asset regulation. The bill establishes a clear timeline for implementation: within 90 days, the SEC and CFTC are to adopt a joint charter for the committee, appoint members within 120 days, and hold the first meeting within 180 days of the law’s enactment.
This organized strategy not only outlines improvements to regulatory practices but also hints at advancements in the digital asset sector. As the crypto landscape continues to evolve, the BRIDGE Act might unlock a balance between necessary regulation and fostering innovation, ultimately benefiting the U.S. economy and enhancing its position in the global digital asset domain.
Image from Built In, chart from TradingView