The Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) of the United States could have a stronger relationship if they communicated more. John Rose, a House of Representatives member from Tennessee and a member of the Financial Services Committee, is optimistic about this possibility. On September 12, he introduced a bill to establish a joint advisory committee on digital assets between the two agencies.
The bill proposed by Rose, titled the ‘‘Bridging Regulation and Innovation for Digital Global and Electronic Digital Assets Act,’’ aims to create the Joint Advisory Committee on Digital Assets. This committee would offer advice to the agencies, promote regulatory alignment, and explore methods for describing, measuring, and quantifying digital assets. Additionally, it would investigate how digital assets and blockchain technology can enhance efficiency and consumer protection in financial markets.
The committee would be comprised of at least 20 non-governmental members, representing the digital asset industry, users, and academics. Each agency would have a single representative, and they would be required to publicly respond to the committee’s recommendations. Committee members would serve two-year terms and convene at least twice annually.
In a statement provided to Cointelegraph, Rose expressed concerns about the United States’ current enforcement-based approach to digital assets, which he believes is driving investment overseas. He has received an “A” rating from the Coinbase-backed Stand with Crypto political action committee and has supported various initiatives related to financial innovation and cryptocurrency regulation.
Overall, Rose’s bill proposes the establishment of a committee to foster better communication and collaboration between the SEC and CFTC, with the goal of creating a more conducive regulatory environment for digital assets and blockchain technology.