New Crypto Bill Proposes Joint SEC and CFTC Oversight

A new crypto bill on Capitol Hill aims to share oversight powers between the SEC and CFTC, two key regulatory bodies in the U.S. Introduced by U.S. Representative John Rose of Tennessee, the Bridging Regulation and Innovation for Digital Global and Electronic Digital Assets proposes the establishment of a Joint Advisory Committee focused on cryptocurrencies. This initiative seeks to leverage the expertise from both the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).

According to Rep. Rose, the current “heavy-handed” regulation-by-enforcement approach has proven ineffective. Instead of competing for oversight, the SEC and CFTC should collaborate with private entities to build a comprehensive digital asset framework.

The BRIDGE Digital Assets Act suggests including 20 nongovernmental individuals from the cryptocurrency industry in the committee. This group would meet at least twice a year and serve two-year terms. Additionally, Rep. Rose emphasized exploring how decentralized technology could enhance traditional financial sectors without compromising investor safety.

The BRIDGE Digital Assets Act is another attempt by American lawmakers to standardize regulations for the crypto industry. In May, the U.S. House of Representatives passed a bipartisan bill that also proposed sharing regulatory powers between the SEC and CFTC. While the White House objected to the Financial Innovation and Technology for the 21st Century Act, it expressed a willingness to negotiate on FIT 21 and other digital asset bills.

Both the CFTC and SEC have taken legal action against major cryptocurrency entities multiple times, although they often disagree on how digital assets should be classified. For instance, assets like Ethereum highlight the agencies’ different approaches. SEC Chair Gary Gensler has been vague when questioned about whether Ether is a security or a commodity like Bitcoin. Conversely, CFTC Chair Rostin Behnam has clearly stated that ETH is a commodity and should fall under CFTC oversight.

For more updates on cryptocurrency regulations and market news, stay tuned to Global Crypto News.