U.S. Congressman introduces the "Off-Chain Digital Commodity Trade Reporting Act," requiring crypto companies to report off-chain trades to the CFTC

ChainCatcher news, according to Cointelegraph, a new bill in the United States aims to require cryptocurrency service providers to report all blockchain transactions to government repositories.

On September 28, U.S. Congressman Don Beyer introduced the "Off-Chain Digital Goods Transaction Reporting Act," which requires trading platforms to report all transactions to repositories registered with the Commodity Futures Trading Commission (CFTC). The new legislation aims to protect cryptocurrency investors from disputes, manipulation, or fraud that may arise from off-chain transactions or transactions occurring outside the blockchain network. Unlike on-chain transactions, off-chain crypto transactions are not immediately recorded on the blockchain but are processed through secondary layers, which creates some difficulties in tracking.

The announcement noted that with the emergence of trading platforms and the desire to increase trading speed and reduce costs, thousands of transactions occur "off-chain" and are not recorded on a publicly visible blockchain.