Cointelegraph Team
Cointelegraph
A new bill in the United States aims to require cryptocurrency service providers to report all blockchain transactions to a government repository.
On Sept. 28, U.S. Representative Don Beyer introduced the “Off-Chain Digital Commodity Transaction Reporting Act,” requiring trading platforms to report all transactions to a repository registered with the Commodity Futures Trading Commission.
The new legislation aims to protect cryptocurrency investors from disputes, manipulation or fraud potentially stemming from transactions occurring off-chain or transactions that take place beyond the blockchain network. Unlike on-chain transactions, off-chain crypto transactions are not instantly logged on a blockchain but are processed through secondary layers, thus creating some difficulties in being tracked.
With the emergence of trading platforms and a desire to increase transaction times and lower costs, thousands of transactions occur “off-chain” and are unrecorded on the publicly viewable blockchain, the announcement notes.
“Unfortunately, internal record keeping among these private entities can vary wildly, and this can leave investors and consumers vulnerable to fraud and manipulation,” Beyer wrote, adding:
This bill is a common-sense measure to restore some transparency and confidence to the digital asset market.
According to the bill, crypto service providers will be required to report all off-chain transactions within 24 hours to a CFTC-registered trade repository. The announcement notes that the requirements are similar to the rules for “virtually all securities and swaps transactions.”
U.S. lawmakers have been closely focused on cryptocurrency regulations recently. In mid-September, nine U.S. senators added their support to Senator Elizabeth Warren’s Digital Asset Anti-Money Laundering Act. Reintroduced in July 2023, the legislation in its current form intends to crack down on noncustodial digital wallets and extend Bank Secrecy Act responsibilities, among other legal measures, to fight the illicit use of digital money.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.
Recommended Content
Editors’ Picks
Blur price likely to extend losses to 42% as whale investors dump BLUR tokens
Blur price rallied 352% in just 43 days between October 12 and November 24, which propelled it to create a local top at $0.685. While this move is impressive, BLUR has already shed 26% and trades at $0.502. A minor pullback is likely before the altcoin drops even lower.
Charles Hoskinson says, “There was no Cardano ICO”; argues Bitcoin is not decentralized
Cardano is known as the third-generation cryptocurrency and, at times, even the "Ethereum killer" but never as “not a security”. For that matter, the Securities and Exchange Commission, to date, has only named Bitcoin as "not a security," and XRP partially won that label following its lawsuit win.
Terra Classic price recovery rally hiccups as LUNC meets key barrier amid USTC related hype
Terra Classic is on a recovery rally, ploughing back to recover the ground lost after a steep fall as the price action consolidated within a descending parallel channel. The $0.00005234 support floor came into play, providing the launchpad for a recovery.
YGG price remains stable despite $6.05 million worth of tokens entering the market
YGG price was expected to take a hit on November 27 in lieu of the token unlock event that took place during the day. Interestingly, this was not the case as the altcoin managed to not only deflect damage but also retain investors’ profits.
Three key BTC accumulation levels before ETF approval in January 2024
Bitcoin, from a high time-frame perspective, has been in an up-only trend since the start of 2023. BTC has ignored many sell signals due to the likelihood of an Exchange-Traded Fund approval. With the holidays around the corner, falling liquidity could see BTC discounted from its current level, hovering around the $37,000 region.