Lawmakers have proposed new legislation to clarify crypto regulations in the US and shed light on which qualities determine whether or not a digital asset is a security. Representatives Patrick McHenry (R-N.C.), Stephen Lynch (D-Mass.), Glenn Thompson (R-Pa.), Ted Budd (R-N.C.) and Warren Davidson (R-Ohio) introduced the legislation called the "Eliminate Barriers to Innovation Act of 2021" on Tuesday. The law's objective is to establish the jurisdiction of the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) over cryptocurrencies. The SEC oversees assets classified as a security, while the CFTC is in charge of commodities. The bill will create a working group to evaluate the legal and regulatory frameworks governing digital assets in the US. The group will form within 90 days after the approval of the bill. It will be composed of industry experts from the SEC and CFTC and non-governmental representatives from organizations and companies related to financial services and financial technology. The group will analyze current crypto regulations and submit a report within a year on how current legal measures affect markets and the nation's competitive position. It will also provide recommendations to improve the integrity and efficacy of primary and secondary digital asset markets. The move comes amid calls for clearer crypto regulations, with SEC Commissioner Hester Peirce in the forefront of pushing for regulatory clarity as institutional interest in Bitcoin (BTC) and other cryptocurrencies continues to grow.