United

Bank AI

<div class="sg-post-des">
 The new legislation aims to protect crypto investors from disputes, manipulation or fraud potentially stemming from transactions occuring off-chain. 
</div> 
<div class="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. Democrat Representative Don Beyer&nbsp;introduced&nbsp;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 (CFTC). 
 The new legislation aims to protect cryptocurrency investors from disputes, manipulation or fraud potentially stemming from <a rel="noopener noreferrer nofollow" title="transaction" href="https://thebittimes.com/tag/transaction.html">transaction</a>s occurring off<a rel="noopener noreferrer nofollow" title="-chain" href="https://thebittimes.com/tag/chain.html">-chain</a>, or <a rel="noopener noreferrer nofollow" title="transaction" href="https://thebittimes.com/tag/transaction.html">transaction</a>s that take place beyond the blockchain network. Unlike on<a rel="noopener noreferrer nofollow" title="-chain" href="https://thebittimes.com/tag/chain.html">-chain</a> <a rel="noopener noreferrer nofollow" title="transaction" href="https://thebittimes.com/tag/transaction.html">transaction</a>s, off<a rel="noopener noreferrer nofollow" title="-chain" href="https://thebittimes.com/tag/chain.html">-chain</a> crypto <a rel="noopener noreferrer nofollow" title="transaction" href="https://thebittimes.com/tag/transaction.html">transaction</a>s are not instantly logged on a blockchain&nbsp;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: 
 <blockquote>
 “This bill is a common-sense measure to restore some transparency and confidence to the digital asset market.” 
 </blockquote> 
 According to the bill, crypto service providers will be <a rel="noopener noreferrer nofollow" title="require" href="https://thebittimes.com/tag/require.html">require</a>d to <a rel="noopener noreferrer nofollow" title="report" href="https://thebittimes.com/tag/report.html">report</a> all off<a rel="noopener noreferrer nofollow" title="-chain" href="https://thebittimes.com/tag/chain.html">-chain</a> <a rel="noopener noreferrer nofollow" title="transaction" href="https://thebittimes.com/tag/transaction.html">transaction</a>s within 24 hours to a CFTC-registered trade repository. The announcement notes that the <a rel="noopener noreferrer nofollow" title="require" href="https://thebittimes.com/tag/require.html">require</a>ments are similar to the rules for “virtually all securities and swaps <a rel="noopener noreferrer nofollow" title="transaction" href="https://thebittimes.com/tag/transaction.html">transaction</a>s.” 
 Related: Crypto bills could be delayed as many prepare for US gov’t shutdown 
 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. 
 Magazine: Magazine: Blockchain detectives — Mt. Gox collapse saw birth of Chainalysis 
 <template data-name="subscription_form" data-type="law_decoded"></template> 
</div> 
Source: <a rel="noopener noreferrer nofollow" target="_blank" href="https://thebittimes.com/new-us-bill-to-require-firms-to-report-off-chain-transactions-to-cftc-tbt64475.html">https://thebittimes.com/new-us-bill-to-require-firms-to-report-off-chain-transactions-to-cftc-tbt64475.html</a>

New US bill to require firms to report off-chain transactions to CFTC

TheBitTimes

Other articles published on Sep 29, 2023

Mitigating the Risks of Depositing Your Money into Crypto Exchanges

Gemini tells Dutch users to withdraw assets by November 17

Developers relaunch Ethereum testnet Holesky

Valkyrie Granted SEC Approval for Historic Ethereum Futures ETF, a First in Crypto

Polkadot's 0.81% Price Increase to $4.07: Key Insights for September 29, 2023

Major Crypto Firm Enters US Market Amid Regulatory Uncertainty

Join our free newsletter for daily crypto updates!