According to a new tender notice, the Securities and Exchanges Commission [SEC] has been in search of a blockchain analysis firm which could provide readable crypto data.
The notice says,
“The U.S. Securities and Exchange Commission (SEC) is issuing these sources sought notice as a means of conducting market research to determine the availability and technical capability of large and small businesses to provide blockchain data to support the SEC’s efforts to monitor risk, improve compliance, and inform Commission policy with respect to digital assets. The SEC is seeking information for potential sources to support the goal of acquiring data for the most widely used blockchain ledgers, including the universe of available information and transaction details. The SEC is seeking sources for a data source (subscription), which extracts blockchain data and parses this data to make it easily reviewable. The SEC would like to know not only the vendor’s ability to provide the requested data but also an overview of the processes used to extract the data, convert the data into a reviewable format, and the verification steps to ensure there is no loss in data completeness and accuracy due to the data transformation tools and processes applied.”
The responses are to be submitted by 14th February. It has been unclear about what exactly SEC has in mind right now but if we talk about the last two years the SEC have been deeply involved with the crypto space. The SEC has employed jurisdiction over Initial Coin Offerings [ICOs] while only two crypto assets have been designated as non-securities, Ethereum and Bitcoin. The blockchain data will assist the SEC in conditioning crypto ownership. This will be extremely useful in knowing whether a crypto asset or token is a security or not.
Another significant reason is the price manipulation for the rejection of bitcoin and crypto ETF by the SEC because of its inability to monitor trade and hence find whether there has been any manipulation in the price or not. They specifically require the ability to provide “attribution data” which is a difficult task, but not in a majority of cases if sophisticated methods are used. The blockchain analysis will provide a better understanding of the crypto economy which in turn will also allow the SEC to make better-informed decisions on most of the aspects and sectors which are significant for the crypto space.