New Bill Seeks to Simplify U.S. Crypto Regulations

Tennessee Congressman John Rose has introduced a significant piece of legislation called the “BRIDGE Digital Assets Act,” aimed at reshaping the U.S. regulatory framework for cryptocurrencies.

The proposed bill suggests the creation of a Joint Advisory Committee, composed of representatives from both the SEC and the CFTC. This committee would work to reconcile the current conflicting regulations between these two agencies, which oversee different aspects of digital assets.

Rose criticizes the existing “regulation-by-enforcement” model, arguing that it hampers innovation and pushes investment abroad. He advocates for a more supportive regulatory environment for digital asset development.

The BRIDGE Act proposes a committee with at least 20 members from the private sector, including digital asset issuers, researchers, and users, to offer recommendations on various aspects of digital assets like decentralization and security. This committee is expected to meet biannually, with its findings presented to both the SEC and CFTC.

A central goal of the BRIDGE Act is to address the regulatory confusion caused by differing interpretations of digital assets by the SEC and CFTC. By fostering cooperation between these agencies, the act aims to create a unified regulatory approach, enhancing consumer protection, disclosure, and reducing transaction costs.

The bill outlines a specific timeline for implementation: within 90 days of enactment, the SEC and CFTC must establish the committee’s charter, appoint members within 120 days, and hold the first meeting within 180 days. The BRIDGE Digital Assets Act could potentially bring a balanced regulatory framework, benefiting the U.S. economy and its position in the global digital asset market.