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

Virginia’s Democratic typical Don Beyer has ushered successful a caller measure mandating the documentation of off-chain transactions and over-the-counter (OTC) crypto engagements by cryptocurrency exchanges, to beryllium catalogued successful a repository nether the purview of the U.S. Commodity Futures Trading Commission.

New Legislation Targets Off-Chain Transfers successful Crypto Industry

Representative Don Beyer (D-VA), has unveiled a caller legislative portion reportedly aimed astatine safeguarding stakeholders successful the integer assets arena. Titled the “Off-Chain Digital Commodity Transaction Reporting Act,” this measure mandates “trading platforms to study each transactions to a repository registered with the Commodity Futures Trading Commission (CFTC).”

Beyer posits that crypto trading platforms carnivore the work for “reporting each specified transactions to a registered integer plus repository of transactions arsenic soon arsenic technically practicable aft the execution of each specified transaction.” Under Beyer’s legislation, each off-chain integer plus transactions are to beryllium reported wrong a 24-hour window. Off-chain transactions whitethorn encompass peer-to-peer swaps, OTC trades, and adjacent the elemental transportation of reserve assets.

“As consumers progressively crook to ample integer plus trading platforms to behaviour their business, thousands of transactions each time are conducted disconnected the publically verifiable blockchain,” Beyer remarked connected Thursday. “Unfortunately, interior grounds keeping among these backstage entities tin alteration wildly, and this tin permission investors and consumers susceptible to fraud and manipulation.

The Virginia-based person added:

This measure is simply a common-sense measurement to reconstruct immoderate transparency and assurance to the integer plus market.

Beyer’s property merchandise underscored that the advent of crypto trading platforms, coupled with an aspiration to expedite transaction times and diminish costs, leads to thousands of transactions transpiring “off-chain” daily, absent from the nationalist oculus connected the blockchain.

The bureaucrat posits that galore platforms uphold interior backstage ledgers to chronicle transactions, though the integrity of these records tin fluctuate. Beyer fervently contends that specified inconsistencies mightiness pave the mode for disputes, manipulation, oregon fraud, emphasizing that the nonsubjective of this authorities is to shield mean investors.

In 2023, Democratic argumentation architects person acceptable their sights connected cryptocurrency markets, with 9 U.S. legislators rallying behind U.S. legislator Elizabeth Warren’s (D-MA) Digital Asset Anti-Money Laundering Act. Yet, a question of Democratic voters person expressed disdain for Warren’s and the party’s stance connected crypto, declaring their intent to formed ballots against the Democrats owed to this issue.

What bash you deliberation astir the politician’s caller measure that would necessitate crypto platforms to taxable off-chain records to the CFTC successful 24 hours? Share your thoughts and opinions astir this taxable successful the comments conception below.