The Securities and Exchange Commission (SEC) of the United States has signed a fresh agreement with a blockchain analytics company to assist tracking and govern the decentralized finance (DeFi) sector. AnChain.AI, a San Jose-headquarterd analytics company, revealed the collaboration on Twitter on Friday.
According to Forbes, AnChain.AI CEO and co-founder Victor Fang’s company is supplying the SEC with technology to evaluate and track smart contracts. “The SEC is extremely interested in learning about what is going on in the area of smart contract-powered digital assets.”
According to Forbes, the deal’s base worth is $125,000, with five likely one-year extensions with payment of $125,000 per year. The decision comes after SEC Chairman Gary Gensler warned about the possible dangers connected with the DeFi industry on Fox Business earlier in August.
“Our primary emphasis is on investment safety. We are unbiased when it comes to technology, Bitcoin, and other crypto coins… and their creative innovations. But, during the same period, we are not agnostic when it comes to investor security. So, if someone is involved in a venture that provides a security, they should step in and enroll. These ostensibly decentralized financial systems, in fact, contain a high degree of centralization. There is a team of entrepreneurs operating these platforms, and they should step in and collaborate with us to become authorised.”
The SEC charged two Florida men and their Cayman Islands business earlier this month with illegal sales of over $30 million in securities utilizing smart contracts and DeFi technology. This is the SEC’s first lawsuit concerning DeFi securities.
