Digital asset innovation has meandered in the US primarily due to the byzantine regulatory ecosystem which is based on rules established before crypto was even a thing. Today, Representative John Rose of Tennessee has introduced new legislation into Congress that aims to chart a path for new regulations that empower innovation.
The Bridging Regulation and Innovation for Digital Global and Electronic Digital Assets Act or the “BRIDGE” Digital Assets Act, seeks to establish a Joint Advisory Committee (JAC) on digital assets between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). Currently, the SEC regulates securities, and the CFTC regulates commodities and options, but questions remain about what to do with digital assets that may combine different characteristics.
Representative Rose addresses the obvious – the United States should be leading the way when it comes to digital asset innovation.
“The current heavy-handed, regulation-by-enforcement approach isn’t working and is instead encouraging investment in this key innovation overseas. 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 JAC would include 20 non-governmental representatives to provide perspective, with each agency selecting ten entities.
The text of the bill is available here.
There have been multiple attempts within Congress to advance digital asset legislation, but most have fizzled due to partisan disagreements. Rose is a member of the House Financial Services Committee, which should green light the bill for a floor vote. The Senate is a different question.