On September 12, Congressman John Rose introduced the BRIDGE Digital Assets Act, aiming to reform cryptocurrency regulations in the United States.

The legislation seeks to establish a Joint Advisory Committee composed of members from the SEC and CFTC, promoting cooperation between these regulatory bodies.

This proposed committee will include at least 20 members from various sectors of the cryptocurrency industry, including digital asset issuers and academic researchers.

As U.S. elections approach, there is growing optimism within the crypto industry for more favorable regulatory policies.

Ongoing conflicts between the SEC and CFTC regarding regulatory jurisdiction, particularly over the classification of digital assets like Ethereum, have created confusion in the industry.

The SEC has recently clarified its stance on the classification of crypto assets, following a settlement with eToro, which involved a $1.5 million penalty.

Committee members will serve two-year terms and are expected to meet at least twice a year to provide insights and recommendations on digital asset regulations.

The committee's objectives include harmonizing laws, improving consumer protection, and enhancing market efficiency within the digital asset space.

The bill emphasizes the need for a regulatory framework that encourages innovation and investment in digital assets, rather than driving them overseas.

Crypto users have expressed a mix of hope and skepticism about the bill, with some advocating for changes in SEC leadership to facilitate progress.

The BRIDGE Digital Assets Act could significantly influence the future regulation of digital assets in the U.S., promoting innovation while ensuring consumer protection.

The first meeting of the Joint Advisory Committee is anticipated to occur within 180 days of the Act's enactment.