Legal document

New bill calls for joint SEC and CFTC digital assets working group

Lawmakers from the House of Representatives Financial Services Committee have brought forward a bill that could pave the way for a new joint working group to look at the regulation of digital assets in the United States.

The bill, introduced by Rep. Patrick McHenry (R-NC), would require the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) to establish a new joint working group on digital assets, with the remit to support innovation through effective regulation.

The group would be formed of representatives from both regulators, as well as a number of non-government stakeholders, including from firms that work with and research new emerging technologies.

The working group would also be expected to submit its analysis on the U.S. regulatory framework for digital assets within its first year of establishment, after which time the group would be expected to disband.

The law also leaves scope for the two commissions to extend the reporting period for another year by joint agreement, which would require the submission of an amended report.

Introduced on Monday, the bill won the support of Reps. Tedd Budd (R-NC), Warren Davidson (R-OH) and Stephen Lynch (D-MA), reflecting bipartisan support in the House for the measures.

Reps. Budd and Davidson have both previously supported the Davidson-sponsored Token Taxonomy Act, while Rep. Lynch has also declared support for measures on bank licensing and stablecoins.

The measures are designed to improve the regulatory support in place to encourage innovation in the digital assets sectors. The bill aims to bring together the main regulators concerned with digital assets and their real-world applications, along with voices from industry, to determine whether current regulatory structures are fit for purpose.

If the bill is passed into law, the group would be convened under statute at the earliest opportunity.

See also: Rep. Patrick McHenry discusses “Blockchain Policy Matters” with Bitcoin Association’s Jimmy Nguyen

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