Tennessee Rep. John Rose Proposes Bill to Create Joint Advisory Committee on Cryptos

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Sujha Sundararajan

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Sujha Sundararajan

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Last updated:

September 13, 2024 01:44 EDT

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Tennessee Republican Congressman John Rose, has introduced a new bill to create a CFTC-SEC joint digital asset advisory committee.

The committee will comprise of 20 private sector members from the digital asset industry including issuers, academic researchers and users.

Dubbed “Bridge Digital Assets Act,” the proposed legislation aims to further the regulatory harmonization of crypto policy between both the US Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).

Fox Business reporter Eleanor Terrett first flagged the details of the bill on X, noting that the bill would streamline digital asset regulations.

“The purpose of the committee, I’m told, would be for industry to provide both agencies with advice on their respective rules, regulations, and policies relating to digital assets.”

“The United States must allow digital assets to thrive because the heavy-handed, regulation-by-enforcement approach isn’t working,” posted Congressman John Rose in X.

Further, Rep. Rose stressed that the crypto joint committee will provide a “framework for the government” and private sector partners. He slammed the current “heavy-handed, regulation-by-enforcement approach,” adding that it only encourages investment in this key innovation overseas.

“The Joint Advisory Committee on Digital Assets will provide a framework for the government and private sector partners to cooperate on a path toward success for the regulatory landscape of digital assets and private sector participants.”

Bill Aims to Address Digital Asset Regulatory Gaps

The uncertain regulatory picture for cryptos is slowly making it less attractive in the recent times. Additionally, the SEC and the CFTC have often clashed, with the former treating some cryptos as securities, while the latter viewing as commodities.

In May, the U.S. House of Representatives passed a bipartisan bill – FIT21 – sharing regulatory powers between the SEC and CFTC. However, the SEC chair Gary Gensler slammed the bill, calling it “immeasurable risk” to investors.

The Bridge Digital Asset Act proposal aims to address the lack of clarity and consistency in crypto regulation.

The joint committee will examine the potential for digital assets to improve efficiency in the operation of financial market infrastructure. These include customer protections, greater transparency regarding customer funds, reduced transaction cost and increased access to financial market services.

Besides, the bill mandates that the committee meet at least twice-a-year to provide findings and recommendations to both the agencies.