• The SEC has hired a blockchain analytics firm to monitor the DeFi market

  • The Securities and Exchange Commission of the United States has reportedly inked a $125,000 agreement with blockchain analytics firm AnChain.AI to assist in monitoring and regulating the decentralized finance industry.

    On Friday, an AnChain.AI company representative verified the arrangement with the federal regulator, stating that the SEC and blockchain startup had the option of signing up to five separate one-year contracts for $125,000 each, for a total of $625,000. According to reports, the first contract began in May.

    “The SEC is highly interested in understanding what is going on in the realm of smart contract-based digital assets,” said Victor Fang, CEO and co-founder of AnChain.AI. “We’re giving them technologies to evaluate and trace smart contracts.”

    The apparent deal between the government body and the blockchain firm comes after SEC head Gary Gensler urged DeFi initiatives to register with the agency, alleging they are “decentralized in some aspects but extremely centralized in others.” According to Gensler, DeFi platform developers and others may organize a centralized team that would fall under the regulatory purview of the SEC. The Securities and Exchange Commission (SEC) recently disclosed its first case involving securities using DeFi technology, which resulted in an enforcement action.

    The industry presently has a market valuation of more over $126 billion, according to CoinGecko data. Uniswap is the largest decentralized exchange by volume, with more than $1 billion in DeFi tokens traded in the last 24 hours – its UNI token is also the most valuable, with a market cap of $14.2 billion.

    AnChain.AI, based in California, delivers blockchain analytics and records cryptocurrency transactions across many public and private chains. According to Forbes, the corporation has devised methods to make its business more “preventive,” such as recognizing suspect addresses and transactions rather than conducting investigations just after a breach or other catastrophe.

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