A spokesperson for AnChain.AI, a blockchain analytics firm, recently revealed a $600 000+ contract with the Securities and Exchange Commission (SEC) to help the agency regulate and monitor the DeFi space. The contract – which began in May of 2021 – has an initial value of $125 000, which may escalate to $625 000 if the SEC chooses to retain the group for five more $125 000′ option’ years.
SEC wants to monitor the smart contracts.
“The SEC is very keen on understanding what is happening in the world of smart contract-based digital assets,” said Victor Fang, CEO and co-founder of AnChain.AI. “So we are providing them with technology to analyze and trace smart contracts.” AnChain is focused on tracking illegal activity across crypto, DeFi, and traditional financial institutions alike. Besides helping the SEC investigate suspicious DeFi transactions and activity, they also work with centralized crypto exchanges and fiat institutions to build “preventive” defense against predatory actors in the space.
The DeFi industry is currently handling over $80 billion worth of digital assets.
Some former SEC members have shown promise and faith in both crypto and decentralized finance. They continue to keep an eye out for the bad actors within the space. Earlier this month, SEC’s current commissioner Gary Gensler explained to WSJ why DeFi and “decentralized” operations still 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 currently handling over $80 billion worth of digital assets.