Representative Don Beyer has introduced the "Off-Chain Digital Commodity Transaction Reporting Act," aiming to enhance transparency in the crypto industry. The bill mandates cryptocurrency exchanges to report off-chain transactions and over-the-counter (OTC) crypto engagements to a repository registered with the U.S. Commodity Futures Trading Commission (CFTC). Beyer emphasizes the need for transparency and investor protection, addressing the challenges posed by off-chain transactions, which are often conducted away from the publicly verifiable blockchain.
US Representative Don Beyer Introduces Bill to Report Off-Chain Crypto Transactions to CFTC
Representative Don Beyer (D-VA) has proposed the "Off-Chain Digital Commodity Transaction Reporting Act," a new legislative measure aimed at ensuring transparency and investor protection in the cryptocurrency industry. The bill mandates cryptocurrency exchanges to report off-chain transactions and over-the-counter (OTC) crypto engagements to a repository registered with the U.S. Commodity Futures Trading Commission (CFTC).
Beyer argues that off-chain transactions, which occur away from the publicly verifiable blockchain, pose challenges to transparency and consistency in record-keeping. The bill addresses the responsibility of crypto trading platforms, requiring them to report all transactions within a 24-hour window to a registered digital asset repository. Off-chain transactions covered by the legislation include peer-to-peer swaps, OTC trades, and the transfer of reserve assets.
"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 stated. "Unfortunately, internal record-keeping among these private entities can vary wildly, and this can leave investors and consumers vulnerable to fraud and manipulation."
Beyer's press release underscores the objective of the legislation, which aims to restore transparency and confidence in the digital asset market. The bill is part of a broader legislative focus on cryptocurrency markets in 2023, following the introduction of Senator Elizabeth Warren's Digital Asset Anti-Money Laundering Act, supported by nine U.S. legislators. While regulatory initiatives are underway, the crypto industry faces diverse opinions and concerns from Democratic voters, creating a dynamic landscape for legislative developments.
(Jamie Redman, Bitcoin News, 2023)