BRIDGE Act: Congress’ Answer to America’s Crypto Regulatory Black Hole

Key Takeaways

• A U.S. Congressman has introduced a new crypto bill to end the regulatory power tussle.
• The BRIDGE Act aims to set a 20-member joint committee to report to the SEC and CFTC.
• The committee will be responsible for clearer crypto regulations.

In a step toward taming the Wild West of crypto regulation , Congress is introducing the Bridging Regulation and Innovation for Digital Global and Electronic Digital Assets (BRIDGE) Act, a bill that aims to bring order to the country’s murky rules governing digital assets.

The bill, sponsored by Congressman John Rose, would create a joint advisory committee on digital assets.

The new bill aims to end the power tussle between federal regulators over crypto oversight.

Congress Bill Aims to End Regulatory Power Struggle

The BRIDGE Act proposes creating a joint advisory committee comprising 20 private sector representatives from various decentralized sectors.

The committee looks to bring together the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) to foster greater coordination and consistency in the oversight of the crypto market. 

As part of the proposal, the committee will oversee the development of a clear rule book based on these suggestions.

Congressman Rose argued that the current “regulation-by-enforcement” approach is driving innovation overseas, which is why he advocates for a collaborative framework between the government and the private sector.

“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,” Congress Rose expressed.

A Change in the Regulatory Landscape?

The BRIDGE Act comes at an important moment in the crypto regulatory landscape in the U.S., where a lack of clarity has led to a murky environment.

For years, the crypto industry and lawmakers have called for clearer guidelines, but the SEC and the CFTC have instead pursued a strategy of enforcement , prosecuting crypto firms with zeal.

However, the tide appears to be turning. Courts are increasingly skeptical of the SEC’s approach, dismissing lawsuits against crypto companies due to lack of evidence.

Meanwhile, the SEC has softened its stance, acknowledging mistakes in its labeling of crypto assets.

Moreover, As the U.S. general elections approach, crypto regulation has emerged as a key policy issue .

Crypto companies are pouring millions into supporting lawmakers who champion their cause, hoping to clarify the regulatory landscape once and for all.

The BRIDGE Act, much like FIT21 , is a crucial piece of the puzzle in the ongoing quest to bring clarity to America’s cryptic crypto regulations.