New bill proposes joint SEC-CFTC committee to shape US crypto regulations

A newly introduced bill aims to create a joint committee between the U.S. Securities and Exchange Commission and the Commodity Futures Trading Commission to study digital assets.

House Financial Services Committee member John Rose introduced his bill on Thursday, called the Bridging Regulation and Innovation for Digital Global and Electronic Digital Assets, or the "BRIDGE" Digital Assets Act. Fox Business reporter Eleanor Terrett earlier reported the news. 

"The current heavy-handed, regulation-by-enforcement approach isn’t working and is instead encouraging investment in this key innovation overseas," the Tennessee Republican said in a statement. "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.”

The SEC and CFTC have both brought charges against large crypto firms over the years. The two agencies have also diverged on some crypto-related issues, including the need for legislation and how some cryptocurrencies, such as ether, should be classified.

Rose said the purpose of the committee would be for the SEC and CFTC to give advice on their rules and regulations related to crypto. The committee will include 20 "nongovernmental stakeholders who represent different interests in the digital asset space," with two-year terms and will meet at least twice a year, according to the statement.

The committee will also look into decentralization, and look for ways to increase efficiency in financial markets while focusing on consumer protection. Committee members should include digital asset issuers and users, according to the bill text.