In an effort to clean the burgeoning crypto niche, DeFi, which has frequently faced attacks recently, the United States Securities and Exchange Commission (SEC) has partnered with AnChain.AI, the blockchain analytics firm that will assist in monitoring and regulating the niche. The contract is worth $125,000 and $625,000 for a 5years deal.
This contract coincided with when SEC is getting more interested in the sector due to its exponential growth. As a measure of its maturity, the industry currently manages around $82 billion in value.
Also, UniSwap, the largest Dex, has processed transactions worth more than $1.8 billion within the year hours, including tokens that could be categorized as securities. As a result, the platforms are becoming increasingly complex.
Speaking on the development, AnChain.AI CEO and co-founder described the interest of SEC in the space and said that “The SEC is very keen on understanding what is happening in the world of smart contract-based digital assets…so we are providing them with technology to analyze and trace smart contracts.”
You will recall that 2018 marked the first major SEC action against the DeFi when it forced close EtherDelta, a DeFi exchange project whose operation appeared illegal.
Through its Chair, Gary Gensler, the agency also recently echoed that the industry is not immune to SEC regulation in an interview. He said that “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 sudden deal with AnChain.AI, a San Jose-based artificial intelligence and machine learning blockchain startup, which majors on tracking illicit activity across crypto exchanges, DeFi protocols, and traditional financial institutions, would be to use its potentials to better the industry.
An investment manager at SIG, appraised the analytic firm in a press release, saying that “AnChain.AI has made great progress in developing its market-leading crypto security technology to meet its customers’ broad demand in regulatory compliance and transaction intelligence.”