A newly introduced bill aims to form a joint committee between the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) to guide regulations on digital assets. Representative John Rose (R-TN), a member of the House Financial Services Committee, introduced the bill on Thursday, calling it the "Bridging Regulation and Innovation for Digital Global and Electronic Digital Assets," or the "BRIDGE" Digital Assets Act.

The proposed Joint Advisory Committee on Digital Assets would consist of 20 non-governmental stakeholders from various sectors of the digital asset space, including issuers and users of cryptocurrencies. These members would serve two-year terms and meet at least twice a year. Their role would be to provide input to the SEC and CFTC on rules, regulations, and policies related to digital assets.

Rep. Rose emphasized that the current approach of "regulation-by-enforcement" has been ineffective and has driven key innovations in digital assets overseas. "The Joint Advisory Committee on Digital Assets will provide a framework for the government and private sector partners to cooperate on a path toward success for the regulatory landscape of digital assets and private sector participants," Rose said in a statement.

The SEC and CFTC have both taken action against major cryptocurrency firms in recent years, but the two agencies often differ in their regulatory approaches. A major point of contention between them is the classification of ether (ETH), and the extent to which digital assets should be regulated by either agency.

The bill also aims to explore issues of decentralization and improve efficiency in financial markets, with a strong focus on consumer protection. If passed, this bill would allow both agencies to collaboratively shape the evolving regulatory framework for the digital asset industry.

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