Bill calls for SEC-CFTC digital asset collaboration

A new bill, the Bridging Regulation and Innovation for Digital Global and Electronic Digital Assets Act (BRIDGE Act), has been introduced by U.S. Representative John Rose (R-TN) to enhance collaboration between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) in regulating digital assets. 

According to Rep. Rose, the proposed legislation seeks to establish a Joint Advisory Committee (JAC) to bring together both agencies and private sector stakeholders to create a balanced regulatory framework for the growing digital asset industry.

Rep. Rose introduced the BRIDGE Act on Thursday, emphasising the need for a cooperative regulatory approach. 

“The United States must provide a future where digital assets can thrive,” Rose stated. 

He criticised the current enforcement-centric strategy, arguing, “The current heavy-handed, regulation-by-enforcement approach isn’t working and is instead encouraging investment in this key innovation overseas.”

The proposed JAC would serve as a platform for collaboration between government bodies and the private sector. 

Rose believes that such cooperation is crucial for advancing digital assets in a way that supports innovation while ensuring compliance. 

"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," Rose explained.

Based on the proposed legislation, the committee would consist of 20 members representing a wide range of interests in the digital asset sector. 

Ten members would be appointed by each regulatory body, the SEC and the CFTC, with each member serving a two-year term. 

The JAC would meet at least twice annually to advise both agencies on rules, regulations, and policies related to digital assets. 

While members would not receive compensation, travel expenses may be reimbursed.