U.S. Representative Don Beyer recently unveiled the Off-Chain Digital Commodity Transaction Reporting Act, a legislative proposal designed to protect crypto market investors from manipulation, disputes, and fraudulent activities.
Per the latest proposal, each trading platform is required to submit comprehensive transaction reports to a repository officially registered with the Commodity Futures Trading Commission (CFTC).
Representative Beyer emphasized:
"As more and more consumers rely on prominent digital asset trading platforms for their transactions, a significant number of daily transactions occur outside the publicly verifiable blockchain. Regrettably, the internal record-keeping practices of these private entities exhibit considerable disparities, potentially exposing investors and consumers to fraud and manipulation. This bill represents a straightforward step towards reinstating transparency and bolstering confidence within the digital asset market."
The main objective of this bill is to monitor all off-chain transactions that are not recorded on the publicly viewable blockchain.
Recently, U.S. lawmakers have been working towards creating crypto regulations.
Nine Senators have supported Senator Elizabeth Warren’s Digital Asset Anti-Money Laundering Act.
This act aims to combat the illegal use of digital money by extending the Bank Secrecy Act’s responsibilities to digital wallets.