Proposed law calls for the SEC and CFTC to establish a joint digital assets working group

A group of lawmakers on the House of Representatives Financial Services Committee has filed legislation that, if approved, would lead to a digital asset working group led by a pair of key U.S. regulators.

The bill directs the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC) to jointly establish a working group on digital assets to support innovation. The group would be composed of representatives of the two commissions and nongovernmental stakeholders appointed by the regulators, like members of firms that utilize, produce or research emerging technologies.

The working group would be charged with submitting an analysis of the U.S. legal and regulatory framework for digital assets to the CFTC and SEC within a year of formation. After submitting this analysis, the working group would be disbanded. The chairs of the two commissions could jointly extend another year. In that case, the working group would submit an amended report.

Rep. Patrick McHenry (R-NC) introduced the bill calling for such a move on Monday. Four other members co-sponsored the bill with McHenry. Reps. Tedd Budd (R-NC) and Warren Davidson (R-OH) have long taken an interest in blockchain technology, supporting Davidson's Token Taxonomy Act.

Rep. Stephen Lynch (D-MA) has also shown a growing interest in digital assets, focusing on bank licensing and stablecoins. He co-sponsored the STABLE Act, for example.

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