A Democrat in the US Congress is introducing a bill to keep centralized records of all off-chain crypto transactions. U.S. Rep. Don Beyer, a Democrat, wants to push off-chain crypto transaction data into repositories where regulators can see it. This would help in halting a future FTX-like crash.
Beyer hopes he could merge his idea for crypto data repositories into Republicans’ market-structure bill that’s already in motion. With the house being majority Republican though, this can be a difficult task.
“As consumers increasingly turn to large digital asset trading platforms to conduct their business, thousands of transactions each day are conducted off the publicly verifiable blockchain,” Beyer says in a Thursday statement.
“Unfortunately, internal record keeping among these private entities can vary wildly, and this can leave investors and consumers vulnerable to fraud and manipulation.”
U.S. Rep. Don Beyer
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Furthermore, Beyer’s proposal calls for regulated repositories to gather the data for each trade of a “digital commodity, digital asset, or digital collectible” for use by agencies including the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC).
Additionally, according to Beyer, his legislation would require that all off-chain digital asset transactions be reported within 24 hours to a CFTC-registered trade repository. This is similar to the requirements for virtually all securities and swaps transactions. A centralized record of crypto transactions off-chain would protect participants in crypto trading, Beyer says.