- U.S. Representative John Rose (R-TN) introduced the Bridging Regulation and Innovation for Digital Global and Electronic Digital Assets Act (BRIDGE Act) on Thursday.
- This proposed legislation aims to create a Joint Advisory Committee (JAC) on digital assets, facilitating collaboration between the SEC and the CFTC regarding regulations.
- “The United States must provide a future where digital assets can thrive,” stated Rep. Rose, criticizing current regulatory practices.
Discover how the BRIDGE Act aims to foster better regulatory harmony between government and the private sector in the evolving digital asset landscape.
An Overview of the BRIDGE Act’s Objectives and Structure
The BRIDGE Act, presented by Rep. John Rose, is designed to integrate regulatory frameworks for digital assets by forming the Joint Advisory Committee (JAC). This committee will bring together expertise from both the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) to create cohesive and effective regulations.
The Necessity of Regulatory Reform in the Digital Asset Space
Rep. Rose highlighted the inefficiencies of the current regulatory environment, which he describes as “heavy-handed” and overly reliant on enforcement rather than comprehensive rule-making. He pointed out that this approach has driven innovators and investment opportunities overseas, emphasizing the need for a more cooperative and forward-thinking regulatory framework within the U.S. financial system.
The Composition and Functioning of the Joint Advisory Committee
The Joint Advisory Committee will consist of 20 members, equally divided between the SEC and the CFTC. These members, appointed for two-year terms, will meet at least twice a year and offer expertise on various rules, regulations, and policies concerning digital assets. The aim is to leverage their diverse insights to create a balanced and effective regulatory environment that promotes innovation while ensuring compliance and security.
Impact and Expectations from the BRIDGE Act
By establishing the JAC, the BRIDGE Act seeks to create an institutional platform where government entities and private sector stakeholders can collaboratively shape the future of digital asset regulation. This collaboration is expected to yield a regulatory landscape that not only keeps pace with technological advancements but also provides clear guidance and stability for investors and innovators alike.
Conclusion
The BRIDGE Act represents a significant step toward creating a harmonized regulatory framework for digital assets, focusing on collaboration between regulatory agencies and industry participants. This initiative could potentially position the United States as a leader in digital asset innovation, fostering an environment where technological progress and regulatory compliance coexist effectively.
