A fresh crypto bill on Capitol Hill aims to divide oversight authority between the SEC and CFTC, two major regulatory bodies.
Presented by U.S. Representative John Rose of Tennessee, the Bridging Regulation and Innovation for Digital Global and Electronic Digital Assets would create a Joint Advisory Committee focused on cryptocurrencies. This collaborative endeavor would draw on 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 approach has proven ineffective. Instead of competing for oversight, the SEC and CFTC should collaborate with private entities to establish a digital asset framework.
The BRIDGE Digital Assets Act suggests including 20 non-governmental individuals from the cryptocurrency industry. The committee would convene at least twice a year and serve two-year terms. Rep. Rose also proposed exploring how decentralized technology could enhance traditional financial sectors while ensuring investor safety.
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The BRIDGE Digital Assets Act is another effort by American legislators to standardize regulations for the crypto industry. In May, the U.S. House of Representatives approved a bipartisan bill dividing regulatory powers between the SEC and CFTC.
The White House opposed the so-called Financial Innovation and Technology for the 21st Century Act, but expressed willingness to negotiate on FIT 21 and other digital asset bills.
Both the CFTC and SEC have filed multiple lawsuits against major crypto players, although the two agencies have differing views on how digital assets should be treated.
Assets like Ethereum (ETH) highlight the agencies’ contrasting approaches. SEC Chair Gary Gensler has given a vague response when asked whether Ether is a security or a commodity like Bitcoin (BTC). In contrast, CFTC Chair Rostin Behnam has firmly stated that ETH is a commodity and should fall under CFTC oversight.
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