U.S.: BLOCKCHAIN ANALYTICS FIRM TO TRACK DEFI PLATFORMS FOR SEC U.S.: Blockchain analytics firm to track DeFi platforms for SEC

Key facts

:

  • DeFi platforms might not be as decentralized, according to SEC director.

  • The SEC hires a firm specializing in analyzing and tracking smart contracts.

The U.S. Securities and Exchange Commission signed a contract with a blockchain analytics company, with a view to implementing greater oversight over decentralized finance platforms, or DeFi.

The company AnChain.AI would be tasked with helping theSecurities and Exchange Commission

(SEC) monitor and regulate the various platforms with financial functionalities.

A Forbes

report indicates that the contract has a value of USD 125,000 per year and a duration of 5 years, which places the total amount of the contract at USD 625,000, which would have started in May 2021.

According to Victor Fang, CEO and founder of AnChain.AI, the firm “will provide the technology to analyze and track smart contracts

” to the SEC.

This technology would be based on artificial intelligence and machine learning

. It is also indicated that they would have a tool or predictive engine that can identify potentially suspicious transactions and addresses.

Forbes

indicated that AnChain also announced on August 28, 2021, the closing of a first round of financing (Series A) totaling USD 10 million from several investors.

The firm is based in San Jose, California, and has served major exchanges such as Huobi

.

SEC seeks to protect investors with its regulations

U.S.: BLOCKCHAIN ANALYTICS FIRM TO TRACK DEFI PLATFORMS FOR SEC U.S.: Blockchain analytics firm to track DeFi platforms for SEC U.S.: BLOCKCHAIN ANALYTICS FIRM TO TRACK DEFI PLATFORMS FOR SEC U.S.: Blockchain analytics firm to track DeFi platforms for SEC Gary Gensler, the current head of the SEC, comes from teaching about Bitcoin and cryptocurrencies at the Massachusetts Institute of Technology (MIT), however he does not lose sight of his regulatory mission. Source: Wikipedia.

Although the current director of the SEC, Gary Gensler, has expressed his intrigue for bitcoin, he prefers to remain neutral and has pointed out that investment funds in this cryptocurrency should be regulated, according to CryptoNews

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.

Also, in a recent interview

He said that some seemingly decentralized DeFi platforms have some points of centralization, such as a small group of developers making major decisions, or having a functioning governance system, factors that force authorities to take action to protect investors.