Tennesse Republican pitches joint SEC-CFTC crypto oversight

A new cryptocurrency bill on Capitol Hill aims to share oversight powers between regulatory giants the SEC and the CFTC.

The Bridging Regulation and Innovation for Digital Global and Electronic Digital Assets Act, introduced by U.S. Representative John Rose of Tennessee, would establish a Joint Advisory Committee focused on cryptocurrencies. This collaborative effort would draw on knowledge and expertise from both the Securities and Exchange Commission and the Commodity Futures Trading Commission.

According to Representative Rose, the current “heavy-handed” regulation-enforcement style has proven ineffective. Instead of fighting for oversight, the SEC and CFTC should partner with private actors to create a digital asset framework.

The BRIDGE Digital Assets Act proposes to include 20 non-governmental individuals from the cryptocurrency industry. The committee will meet at least once every two years and serve two-year terms. Representative Rose also proposed to explore how decentralized technology can improve traditional financial sectors without compromising investor security.

Washington is interested in crypto laws

The BRIDGE Digital Assets Act is another attempt by American lawmakers to standardize rules for the crypto complex. In May, the US House of Representatives passed a bipartisan bill that would share regulatory powers between the SEC and the CFTC.

The White House has objected to the Financial Innovation and Technology for the 21st Century Act but has indicated it is ready to negotiate on FIT 21 and other digital asset bills.

Both the CFTC and SEC have filed lawsuits against prominent figures in the cryptocurrency industry on multiple occasions, but the two regulators disagree on how digital assets should be handled.

Assets like Ethereum (ETH) highlight the different approaches of institutions. SEC Chairman Gary Gensler was vague when asked whether Ether is a security or a commodity like Bitcoin (BTC). In contrast, CFTC Chairman Rostin Behnam has categorically stated that ETH is a commodity and should come under CFTC supervision.