SEC Signs Deal To Monitor The DeFi Industry

According to a company spokesperson, AnChain.AI , the blockchain analytics firm has recently signed a deal with the U.S. Securities and Exchange Commission (SEC) for $125,000 to help them monitor and regulate the turbulent decentralized finance industry. Besides, according to a report from Forbes on Friday, a spokesman for AnChain.AI has confirmed the agreement with the federal regulator.

He said that the SEC and the blockchain company had the choice to sign up to five separate one-year contracts for $ 125,000. per contract, or a total of 625,000 US dollars. Their first contract began in May this year.  Further, Victor Fang, the CEO, and co-founder of AnChain.AI said:

“The SEC is very keen on understanding what is happening in the world of smart contract-based digital assets. We are providing them with technology to analyze and trace smart contracts.”

This agreement or the deal between a government agency and a blockchain company reportedly came after when the Chairman of SEC, Gary Gensler, urged decentralized finance, or DeFi projects to register with the agency while claiming that these projects are “decentralized in some aspects but highly centralized in other aspects.”

SEC Chairman Gary Gensler

Further, Gary Gensler said that the DeFi platform developers and others could form a focus group under the SEC’s regulatory umbrella. The Securities and Exchange Commission recently announced that it has its first securities case involving DeFi technology, leading to enforcement action. According to the data gathered from CoinGecko, the DeFi industry currently has a market capitalization of over $126 billion. In terms of volume, Uniswap is considered the largest decentralized exchange. It has over $1 billion worth of DeFi tokens sold in the last 24 hours.

Moreover, its UNI token also leads with a market cap of $ 14.2 billion. AnChain.AI is a firm based in California. The company provides blockchain analytics and tracks cryptocurrency transactions across multiple public and private chains. Also, AnChain.AI, according to Forbes, has developed a lot of solutions to make the business more “preventive”. They did this by identifying suspicious addresses and transactions more willingly than constantly conducting investigations after a break-in or other incident.

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