Tile. I tried to make a post about this the other day, but I feel as though I may have misrepresented my own ideas or concepts by simply not articulating what should be done in such a hypothetical. I'm going to try to lay out a new hypothetical with less fluff. Perhaps the most important part about this is to have intelligent and coherent conversations surrounding this topic, instead of just calling it a bad idea and moving on.

What are the problems?

1. There is a binary 1 / 0 "Is this a security?" question and the financial laws governing the decision(s) around these were created in the 1930s.
   
2. There needs to be a new definition or new set of definitions for cryptocurrencies that are not commodities.
   
3. There seems to be popular sentiment that Gary Gensler is the face and sole decision maker of the SEC when it comes to crypto and securities. Congress wastes time when they grill him.
   
4. Complementing problem 2 above, if he holds significant sway in such decisions, there might be an issue with objectivity in deciding what is and isn't a security.
   
5. The amount of time and finances spent in litigation to determine the legal status of a crypto-asset can be mind-numbing. LBRY's and Ripple's legal cases probably stand out as shining examples, no?
   

I would propose that this new group be called "Crypto-Assets Commission" or "CAC" for short. Obviously, creating the criteria to be elected a member of this "group of regulators" would be difficult to say the least, but I recommend the group consists of the following:
1. 10 members who meet and discuss legal affairs. when necessary, they vote on whether or not something is a security or a "Crypto-security-asset."
2. People elected to this group must have a background in cryptocurrency, but -even harder to verify- is making sure they do not have a vested interest in any single project.
3. Case-by-case they set the tax rate per project - if there are taxes to be had.
4. These members cannot be "lobbied" or "bribed" financially - if they are, they can be jailed for no less than 15 years.
5. They also conduct other ad-hoc duties in the cryptocurrency space.

In conclusion, this idea might be way too "pie in the sky".