Rep. John Rose Introduces Bill to Establish Joint Advisory Committee on Digital Assets

Rep. John Rose Introduces Bill to Establish Joint Advisory Committee on Digital Assets

Tennessee Republican Congressman John Rose has proposed a new bill aimed at creating a joint advisory committee on digital assets, bringing together the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC). The proposed legislation, known as the "Bridge Digital Assets Act," seeks to enhance regulatory coordination and harmonization for cryptocurrencies.

The committee, if established, will consist of 20 members from the private sector, including digital asset issuers, academic researchers, and industry users. Its primary role will be to advise both the CFTC and SEC on regulations and policies concerning digital assets.

Fox Business reporter Eleanor Terrett highlighted the bill's focus on streamlining digital asset regulations. "The purpose of the committee," Terrett noted, "would be to provide both agencies with industry insights on their respective rules and regulations regarding digital assets."

Rep. Rose has criticized the current "heavy-handed, regulation-by-enforcement" approach to digital asset regulation, arguing that it hinders innovation and drives investment abroad. He emphasized that the new committee would create a cooperative framework for the government and private sector to address regulatory challenges more effectively.

The Bridge Digital Assets Act aims to address the fragmented regulatory landscape for cryptocurrencies, which has been a source of confusion and conflict. The SEC and CFTC have frequently disagreed on how to classify and regulate digital assets, with the SEC often treating some as securities and the CFTC as commodities.

This proposal follows the passage of the FIT21 bill by the U.S. House of Representatives in May, which sought to allocate regulatory powers between the SEC and CFTC. However, SEC Chair Gary Gensler criticized the bill, describing it as posing "immeasurable risk" to investors.

Under the Bridge Digital Assets Act, the joint committee will meet at least twice a year to provide findings and recommendations to both agencies. The committee's work will focus on enhancing customer protections, increasing transparency, reducing transaction costs, and improving access to financial market services through digital assets.