How to Make Money with Web 3.0: New US Bill to Require Companies to Report Off-Chain Transactions to CFTC

Making Money With Web 3.0

In the United States, a new bill has been introduced that would require cryptocurrency service providers to report all off-chain transactions to a government repository. On Sept. 28, U.S. Representative Don Beyer proposed the “Off-Chain Digital Commodity Transaction Reporting Act,” which would require trading platforms to report all transactions to a repository registered with the Commodity Futures Trading Commission.

The bill is intended to protect cryptocurrency investors from any disputes, manipulation or fraud that may arise from transactions that occur off-chain or beyond the blockchain network. Such transactions are not automatically logged on the blockchain, making them difficult to track.

As trading platforms become more popular and users seek faster transaction times and lower costs, thousands of transactions are occurring off-chain and are not being recorded on the publicly visible blockchain.

For those looking to make money with Web 3.0, understanding how to use the technology and invest in it is key. Knowing how to make money on Web 3.0, as well as how to make money from Web 3.0, can help investors maximize their profits.

Investing in Web 3.0 for Financial Gain

U.S. lawmakers have been paying close attention to cryptocurrency regulations recently, as evidenced by Senator Elizabeth Warren’s Digital Asset Anti-Money Laundering Act that was reintroduced in July 2023. The bill looks to combat the illicit use of digital money by extending Bank Secrecy Act responsibilities to noncustodial digital wallets, among other legal measures.

However, according to Congressman Don Beyer, the lack of internal record keeping among private entities can leave investors and consumers vulnerable to fraud and manipulation. As such, the bill requires crypto service providers to report all off-chain transactions within 24 hours to a CFTC-registered trade repository, similar to the rules for “virtually all securities and swaps transactions.”

With the right knowledge, investors can make money with Web 3.0, as long as they stay informed on the latest regulations and crypto service providers. Knowing how to use Web 3.0, how to make money from it, and how to invest in it are all key components to financial success.