US Representative Introduces Legislation to Mandate Reporting of Off-Chain Crypto Transactions to the CFTC

Virginia’s Democratic consultant Don Beyer has ushered in a recent invoice mandating the documentation of off-chain transactions and over-the-counter (OTC) crypto engagements by cryptocurrency exchanges, to be catalogued in a repository beneath the purview of the U.S. Commodity Futures Trading Commission.

New Legislation Targets Off-Chain Transfers in Crypto Industry

Representative Don Beyer (D-VA), has unveiled a brand new legislative piece reportedly aimed toward safeguarding stakeholders within the digital property enviornment. Titled the “Off-Chain Digital Commodity Transaction Reporting Act,” this invoice mandates “trading platforms to report all transactions to a repository registered with the Commodity Futures Trading Commission (CFTC).”

Beyer posits that crypto buying and selling platforms bear the duty for “reporting all such transactions to a registered digital asset repository of transactions as soon as technically practicable after the execution of each such transaction.” Under Beyer’s legislation, all off-chain digital asset transactions are to be reported inside a 24-hour window. Off-chain transactions could embody peer-to-peer swaps, OTC trades, and even the easy switch of reserve property.

“As consumers increasingly turn to large digital asset trading platforms to conduct their business, thousands of transactions each day are conducted off the publicly verifiable blockchain,” Beyer remarked on Thursday. “Unfortunately, inner report conserving amongst these personal entities can fluctuate wildly, and this will go away buyers and shoppers susceptible to fraud and manipulation.

The Virginia-based politician added:

This invoice is a common sense measure to revive some transparency and confidence to the digital asset market.

Beyer’s press launch underscored that the arrival of crypto buying and selling platforms, coupled with an aspiration to expedite transaction instances and diminish prices, results in hundreds of transactions transpiring “off-chain” day by day, absent from the general public eye on the blockchain.

The bureaucrat posits that quite a few platforms uphold inner personal ledgers to chronicle transactions, although the integrity of those data can fluctuate. Beyer fervently contends that such inconsistencies would possibly pave the way in which for disputes, manipulation, or fraud, emphasizing that the target of this laws is to defend peculiar buyers.

In 2023, Democratic coverage architects have set their sights on cryptocurrency markets, with 9 U.S. legislators rallying behind U.S. senator Elizabeth Warren’s (D-MA) Digital Asset Anti-Money Laundering Act. Yet, a wave of Democratic voters have expressed disdain for Warren’s and the get together’s stance on crypto, declaring their intent to forged ballots towards the Democrats attributable to this difficulty.

What do you concentrate on the politician’s new invoice that may require crypto platforms to submit off-chain data to the CFTC in 24 hours? Share your ideas and opinions about this topic within the feedback part under.