Crypto industry could see joint regulation under new US bill

A new bill introduced by US Representative John Rose aims to foster cooperation between two major financial regulators, the SEC and CFTC, in overseeing the cryptocurrency industry. The ‘Bridging Regulation and Innovation for Digital Global and Electronic Digital Assets’ Act (BRIDGE Act) seeks to create a Joint Advisory Committee to draw expertise from agencies and private crypto industry professionals. The committee would meet twice yearly to help shape a regulatory framework that encourages innovation without compromising investor safety.

Representative Rose criticised the current enforcement-driven approach, which he believes has stifled innovation. Instead, he advocates for a more collaborative effort between regulators and private stakeholders to explore how blockchain technology can enhance traditional financial sectors. His proposal includes appointing 20 industry experts to the advisory committee, serving two-year terms.

The latest legislative move is part of a broader effort by US lawmakers to clarify how digital assets should be regulated. The SEC and CFTC have historically clashed over whether cryptocurrencies like Ethereum should be classified as securities or commodities, leading to ongoing legal disputes. While some crypto bills, like the Financial Innovation and Technology for the 21st Century Act, have faced opposition from the White House, negotiations on regulatory frameworks for digital assets are ongoing.