AnChain.AI is a blockchain analytics service provider that has recently signed up a contract with SEC. The CEO of the AnChain.AI told the media that the enterprise is planning to empower SEC investigators to decipher the trading details related to the smart contracts applications. The Securities and Exchange Commission has been littered with the task of regulating the new cryptocurrency market recently.
The contract that is valued at higher than $600,000 depends on how the regulators at SEC are going to utilize the platform. The initial value of the partnership contract is estimated at $125,000 per year. As per the document of the contract, the SEC has the option to extend the service years by five if they can get a better grasp of the DeFi market.
Earlier this year, Gary Gensler, the current SEC chief, told the Wall Street Journal about the new curriculum of SEC towards crypto improvement. The head of the biggest financial watchdog in the USA told the media that many decentralized finance projects claim to operate independently of any centralized or state authority.
He further added that these software developers that claim to create an open-source project have proper incentive inputs, and they also offer promotion fees to the advertisers and sponsors. Therefore, the SEC needs to find the channels to protect the financial interest of the citizen. At present, the DeFi market is valued at $80 billion, and SEC feels the need to upgrade its investigation techniques to keep up with the changing technology.
SEC Commissioner Encourages DeFi Projects to Get Approval from Securities and Exchange Commission
Hester Pierce is a lawyer and commissioner at SEC. She recently told the media that getting approval from SEC is a great prospect for the DeFi projects. She claimed that for many tokens and digital assets, it is not clear if they are securities or just virtual currencies. Therefore, it is a good idea for the DeFi projects to take the initiative and approach the SEC to get legal approval.
She further added that SEC has some specified criteria that can help the DeFi token owners to make their assets more viable for their investors. SEC is currently dealing with a massive DeFi market that is expanding very rapidly. Recently, Bitconnect, a DEX platform, settled worth $12 million with the SEC. Gensler has claimed that SEC lawyers are planning to bring forward more crypto-related cases this year.