Tennessee House of Representatives member John Rose, a member of the Financial Services Committee, proposed a bill on September 12 to foster better communication between the United States Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC). The bill, titled ‘‘Bridging Regulation and Innovation for Digital Global and Electronic Digital Assets Act,’’ aims to establish a Joint Advisory Committee on Digital Assets.
Under this bill, the Joint Advisory Committee on Digital Assets would offer advice to the agencies, work on harmonizing laws, and explore methods for describing, measuring, and quantifying digital assets. It would also investigate how digital assets and blockchain technology can enhance efficiency and consumer protection in financial markets. The 20-member committee would include representatives from the digital asset industry, digital asset users, and academics, with each agency appointing a single representative. Notably, the agencies would be required to publicly respond to the committee’s recommendations, and committee members would have a two-year term, meeting at least twice a year.
Rose expressed concerns over the United States’ current regulation-by-enforcement approach to digital assets, suggesting that it encourages investment overseas. He received an “A” rating from the Coinbase-backed Stand with Crypto political action committee, and has supported various initiatives related to digital innovation, including the Financial Innovation and Technology for the 21st Century Act (FIT21), the House Joint Resolution on overturning the SEC’s Staff Accounting Bulletin 121, and the CBDC Anti-Surveillance State Act. Despite his support of cryptocurrency and blockchain technology, he emphasized the need for better regulatory frameworks to avoid potential risks.