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New US Bill Requires Firms to Report Off-chain Transactions to CFTC

On Friday, September 29, Congressman Don Beyer presented a bill on the “Off-Chain Digital Commodity Transaction Reporting Act” to safeguard investors’ interest in the crypto sector. 

The new provision will require virtual assets service providers (VASPs) to disclose critical information on blockchain transactions to relevant government-based repository platforms. 

US Introduces a New Bill on Crypto

The proposal underlined that the repository must be registered with the Commodity Futures Trading Commission (CFTC). The new legislation will require the VASPs to disclose all off-chain transactions within a day.

Beyer’s recommendation corresponds to existing regulations on all digital securities and swap transactions. The primary objective of the new bill is to safeguard the crypto investor from unethical business practices. 

In his submission, Beyer admitted that investors have recently encountered endless disputes, manipulation, and fraud emanating from off-chain and blockchain-based transactions. The executive stated that the exciting growth of the crypto industry had inspired customers to engage in fast-paced exchanges and trading platforms to complete their daily activities.

Surging Blockchain Transactions Undermine Record-Keeping in Private and Startup Firms

 From a recent report, Beyer argued that hundreds of thousands of transactions are conducted daily on the blockchain network. The surge in blockchain transactions has undermined proper record-keeping among startups and private companies. 

Beyer lamented that gaps in record keeping have posed inherent risks, including fraud and manipulation to investors and consumers. The 73-year-old policymaker explained the need to restore transparency and investors’ confidence in the crypto industry.

 Beyer added that by enacting the new legislation, the regulators will restrict manipulative and fraudulent practices in the crypto sector. 

According to Beyer, blockchain technology has played a vital role in enhancing security, traceability, and transparency in the crypto sector. He confesses that all transactions conducted on the blockchain network are publicly available. 

VASP to Disclose All Blockchain Transactions

Beyer noted that the drastic changes in the crypto sector and the steady growth of trading platforms triggered the spur in the number of transactions on on-chain networks. However, most of the transactions go unrecorded. The legislator argued that off-chain networks differ from on-chain due to their difficulty tracing transactions.

Beyer’s recommendation came when lawmakers in the US focused more on regulating the crypto industry. Currently, several bills are circulating in the US seeking regulatory clarity on crypto assets. A few weeks ago, Senator Elizabeth Warren teamed up with nine other regulators to present the Digital Asset Anti-Money Laundering Act. The draft bill was first introduced in late July to address the money laundering and other illicit use of crypto assets.

New US Bill Requires Firms to Report Off-chain Transactions to CFTC

On Friday, September 29, Congressman Don Beyer presented a bill on the “Off-Chain Digital Commodity Transaction Reporting Act” to safeguard investors’ interest in the crypto sector. 

The new provision will require virtual assets service providers (VASPs) to disclose critical information on blockchain transactions to relevant government-based repository platforms. 

US Introduces a New Bill on Crypto

The proposal underlined that the repository must be registered with the Commodity Futures Trading Commission (CFTC). The new legislation will require the VASPs to disclose all off-chain transactions within a day.

Beyer’s recommendation corresponds to existing regulations on all digital securities and swap transactions. The primary objective of the new bill is to safeguard the crypto investor from unethical business practices. 

In his submission, Beyer admitted that investors have recently encountered endless disputes, manipulation, and fraud emanating from off-chain and blockchain-based transactions. The executive stated that the exciting growth of the crypto industry had inspired customers to engage in fast-paced exchanges and trading platforms to complete their daily activities.

Surging Blockchain Transactions Undermine Record-Keeping in Private and Startup Firms

 From a recent report, Beyer argued that hundreds of thousands of transactions are conducted daily on the blockchain network. The surge in blockchain transactions has undermined proper record-keeping among startups and private companies. 

Beyer lamented that gaps in record keeping have posed inherent risks, including fraud and manipulation to investors and consumers. The 73-year-old policymaker explained the need to restore transparency and investors’ confidence in the crypto industry.

 Beyer added that by enacting the new legislation, the regulators will restrict manipulative and fraudulent practices in the crypto sector. 

According to Beyer, blockchain technology has played a vital role in enhancing security, traceability, and transparency in the crypto sector. He confesses that all transactions conducted on the blockchain network are publicly available. 

VASP to Disclose All Blockchain Transactions

Beyer noted that the drastic changes in the crypto sector and the steady growth of trading platforms triggered the spur in the number of transactions on on-chain networks. However, most of the transactions go unrecorded. The legislator argued that off-chain networks differ from on-chain due to their difficulty tracing transactions.

Beyer’s recommendation came when lawmakers in the US focused more on regulating the crypto industry. Currently, several bills are circulating in the US seeking regulatory clarity on crypto assets. A few weeks ago, Senator Elizabeth Warren teamed up with nine other regulators to present the Digital Asset Anti-Money Laundering Act. The draft bill was first introduced in late July to address the money laundering and other illicit use of crypto assets.

Written by
Don Blankenship

Don Blankenship, a crypto writing maestro, captivates with his astute analyses of blockchain phenomena. Synthesizing the dynamic world of digital currencies into insightful prose, Don's articles are a beacon for enthusiasts and professionals. His expertise establishes him as a definitive voice in crypto journalism.

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