This week, Representative John Rose proposed the creation of an Advisory Committee to reverse the current U.S. regulatory approach to cryptocurrencies and digital assets.
Cryptocurrency regulation has become a hot topic in the United States, mainly due to the lack of legal clarity that exists in relation to these assets. For this reason, Representative John Rose has presented a new bill that seeks to Establish a Joint Advisory Committee on Digital Assets, which combines and reconciles the regulatory expertise of the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) to bring legal clarity to the cryptocurrency and digital asset space.
Through this committee, which would be created between the SEC and the CFTC, the United States could provide a clearer and more collaborative regulatory framework to ensure the responsible and sustainable development of the crypto industry, providing consumers and businesses with a safe and reliable environment.
Rep. Rose's proposal, formally known as the “BRIDGE Digital Assets Act” (Bridging Regulation and Innovation for Digital Global and Electronic Digital Assets Act), seeks to address existing concerns about the lack of regulatory clarity and the need for a more balanced approach towards innovation in the cryptocurrency space in the country.
The creation of an Advisory Committee on Digital Assets is proposed
The Digital Assets Advisory Committee proposed by Rep. Rose would be responsible for advising the CFTC and SEC on rules, regulations, and policies governing digital assets. According to the text of the bill, This committee will be comprised of at least 20 non-governmental members, representing a variety of interests within the cryptocurrency industry. Rep. Rose notes that this diversity is crucial, as it will allow the perspectives of different parties to be considered in the crypto-asset regulatory process.
Regarding the current regulatory landscape for cryptocurrencies in the United States, Representative Rose has emphasized that it has not been successful, but rather the opposite, pushing many startups and innovators in the cryptocurrency field to move to other jurisdictions with more friendly policies for the development of digital assets.
“The Joint Advisory Committee on Digital Assets will provide a framework for government and private sector partners to cooperate on a path to success for the digital asset regulatory landscape.”, Rose said in a recent statement.
The advisory committee proposed in the BRIDGE bill will not only be tasked with advising on existing regulations, but will also explore new ways of describing and measuring aspects such as decentralization and transaction security in the cryptoasset space. This aims to achieve greater clarity and confidence for both investors and developers in the cryptocurrency space.
US lawmakers seek regulatory clarity for cryptocurrencies
The creation of the Advisory Committee is part of a broader effort by U.S. lawmakers to gain regulatory clarity in the crypto sector, which has grown rapidly in recent years.
The cryptocurrency market has seen a significant increase in investment and public interest, but it has also faced regulatory challenges, such as the lack of a clear legal framework, which has led to confusion and the perception that federal agencies are conflicted about how to approach this emerging sector.
Representative Rose also noted that the lack of a coordinated approach between the CFTC and SEC has contributed to market uncertainty. By establishing a committee that includes industry members, it is hoped that the agencies can work together more effectively to develop new regulations that can foster cryptoasset innovation without compromising the protection and security of users and investors.
The BRIDGE bill also includes provisions for agencies to review the committee’s recommendations and issue public statements on their decisions in response to these recommendations. All of this is intended to achieve a high level of transparency that fosters trust in the regulatory process for digital assets in the country.
An uncertain but promising future for cryptocurrencies in the United States
The crypto industry is closely watching how US lawmakers are moving forward with regulating cryptocurrencies and digital assets. If this bill is passed, the Digital Asset Advisory Committee could represent a game-changer in the way cryptocurrencies are regulated in the US currently. However, some have also expressed skepticism about whether this effort will be enough to address existing concerns in this market.
While the creation of a committee to represent the interests of the crypto industry and its participants is a positive step, there is still much work to be done to ensure that future regulations are fair and effective. Trust in regulatory agencies, especially the SEC, has been a recurring theme in cryptocurrency discussions, and many hope that the committee’s new structure can help alleviate some of these concerns.
In addition to the BRIDGE bill, US lawmakers have also introduced other regulatory proposals framed in cryptoasset innovation, such as the Financial Innovation and Technology Act for the 21st Century, which seeks to better define the jurisdictions of federal regulators and protect consumers in the crypto space.
In short, lawmakers are addressing the need for regulation of the crypto industry to strike a true balance between consumer protection and promoting cryptocurrency innovation.
