US Lawmaker Proposes Bill For Joint SEC-CFTC Committee On Digital Assets

Why Trust Tech Report

Tech Report is one of the oldest hardware, news, and tech review sites on the internet. We write helpful technology guides, unbiased product reviews, and report on the latest tech and crypto news. We maintain editorial independence and consider content quality and factual accuracy to be non-negotiable.

US lawmaker Rep. John Rose has introduced a bill that proposes a joint committee between two agencies for digital asset regulations. This bill is tagged the “BRIDGE,” which stands for “Bridging Regulation and Innovation for Digital Global and Electronic Digital Assets.” 

BRIDGE aims to streamline digital assets regulations by establishing an advisory committee comprising members from the SEC and CFTC.

New Bill Aims To Ensure Collaboration Between The SEC And CTFC On Crypto Regulations

The US Congressman John Rose introduced a new bill proposing an advisory committee on digital assets. 

According to the proposal, the committee members will emerge from the top US regulators, the Securities and Exchanges Commission (SEC) and the Commodity Futures Trading Commission (CFTC).

Rep. Rose, a House Financial Services Committee member, tagged the bill the “BRIDGE” Digital Asset Act. It is written in full as Bridging Regulation and Innovation for Digital Global and Electronic Digital Assets.

The BRIDGE Digital Asset Act aims to streamline regulations on crypto assets and promote collaboration between the SEC and CFTC by laying out key policies regarding digital assets.

Further, the bill promises to ensure harmonization of regulatory measures between the two agencies. 

Rep. Rose stated: “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.”

With joint efforts, the committee will constructively devise suitable examination and dissemination approaches on crypto. These methods will cut across several aspects, including description, measurement, and quantification of digital assets.

Similarly, the bill proposes benefits to the crypto space and market participants. The committee will explore the functionalities of blockchain and distributed ledger technology to improve efficiency. 

Its activities will include how these innovations will maintain greater transparency with lower transaction costs. It will also focus on enhancing consumers’ protection in financial markets through increased security of users’ funds.

Details and Timeline For Implementation

The bill proposes 20 non-governmental members for the committee. It will comprise some stakeholders representing the crypto industry, digital asset customers, and academic researchers. Also, the SEC and CFTC will each provide one representative to join the committee. 

Meanwhile, the committee members will serve for just two years and hold meetings at least two times a year. After a solution is reached at meetings, the committee will submit its findings and recommendations to the two agencies.

The agencies are then expected to respond publicly to every recommendation within three months of receipt. The committee members will not receive compensation, only refunds for travel expenses related to committee meetings.

The bill includes a specific implementation timeline. It set 90 days after its enactment for the SEC and CFTC to form a joint charter for the committee. 

Moreover, it demands that the agencies appoint members within 4 months and organize the committee’s inaugural meeting within 6 months.