The US Congress has introduced a new bill around digital assets to promote cooperation between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).
US Representative John Rose (R-TN) introduced the Bridging Regulation and Innovation for Digital Global and Electronic Digital Assets Act (BRIDGE Act).
The newly proposed bill seeks to address these challenges by mandating increased cooperation between the SEC and CFTC.
BRIDGE Act is Bringing the SEC & CFTC Together
Congressman John Rose just rolled out the “BRIDGE Digital Assets Act” to end the turf war between SEC & CFTC.
This move sets up a 20-member squad of private sector big brains, crypto geeks, and academia to hash out rules that make… pic.twitter.com/DrPyWwJJlG
— Mario Nawfal’s Roundtable (@RoundtableSpace) September 14, 2024
SEC, CFTC To Form A Joint Task Force
Both agencies, SEC and CFTC, will establish a Joint Advisory Committee to coordinate efforts in regulating digital assets.
The congressman explained that a 20 member joint task committee on digital assets will help put private sector players and the government on the same page when it comes to digital asset regulations.
This task force will be responsible for developing unified guidelines and policies to ensure consistent regulatory practices.
The bill proposes allocating resources for studies on emerging trends and potential cryptocurrencies’ risks.
“The US must provide a future where digital assets can thrive,” said Rose. He said, “The current heavy-handed, regulation-by-enforcement approach isn’t working and is instead encouraging investment in this key innovation overseas.”
The bill emphasizes the importance of public input in shaping regulatory policies. It proposes regular consultations with industry stakeholders, including crypto companies, investors, and legal experts, to gather insights and feedback on proposed regulations.
Current Issues With Regulating The Digital Space
The digital asset space is known to face conflicting jurisdictions and regulatory uncertainties.
Many view this legislative action as a critical step in creating a more cohesive regulatory framework for cryptocurrencies.
In the US, the SEC and CFTC have been at the forefront of regulating digital assets, but their roles have not always been clearly defined.
The SEC primarily oversees securities, while the CFTC regulates commodities and futures markets.
However, the classification of digital assets has often blurred these lines, leading to confusion and inconsistent enforcement actions.
For example, the CFTC regulates Bitcoin as a commodity, while the SEC classifies many Initial Coin Offerings (ICOs) as securities.
This dual oversight has sometimes resulted in conflicting regulatory approaches, creating uncertainty for businesses and investors in the crypto space.
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Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
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