SEC partnered with Anchain.AI blockchain analytics company in order to trace and analyze smart contracts as the CEO Victor Fang explained so let’s find out more in our latest crypto news today.
The spokesperson for AnChain.AI revealed a $600,000 contract with the Securities and Exchange Commission to help teh agency regulate and monitor the Defi space. The contract started in May 2021 with an initial value of $125,000 which escalates to $625,000 if the SEC decides to retain the group for 5 more of the $125,000 option years which is why the SEC partnered with AnChain.ai. Victor Fang said:
“The SEC is very keen on understanding what is happening in the world of smart contract-based digital assets. So we are providing them with technology to analyze and trace smart contracts.”
AnChain is focused on tracking the illegal activity across Defi, crypto and traditional financial institutions alike so besides helping the SEC investigate suspicious transactions and activity, they work with centralized crypto exchanges and fiat institutions to create a preventive defense against the predatory actors in the space. While some SEC members showed promise and faith in both decentralized and crypto finance, they continue to keep an eye out for the bad actors in the space. Earlier this month, the SEC current commissioner Gary Gensler explained that the DeFi and decentralized operations don’t’ get a pass on regulation:
“There’s still a core group of folks that are not only writing the software, like the open-source software, but they often have governance and fees…There’s some incentive structure for those promoters and sponsors in the middle of this.”
The DeFi industry is now handling over $80 billion worth of digital assets as the SEC continues the investigations and many of these assets are going to be deemed securities. The SEC hopes to understand, regulate and analyze crypto and Defi projects but they only reached a settlement for $12 million in penalties from three BitConnect promoters that are known as one of the biggest Ponzi schemes in history of crypto. In the meantime, they are sifting through a multitude of assets to determine whether or not they are securities. Hester Pierce encouraged DeFi projects to be proactive in getting approval from regulators:
“When you start to look at the tokens themselves and try to figure out whether they’re securities, it does get kind of confusing… This is why I encourage individual projects to come in and talk to the SEC because it really does require a look at the very particular facts and circumstances.”
DC Forecasts is a leader in many crypto news categories, striving for the highest journalistic standards and abiding by a strict set of editorial policies. If you are interested to offer your expertise or contribute to our news website, feel free to contact us at [email protected]