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SEC Inked Agreement With Blockchain Entity For DeFi Supervision & Regulation

By Shannon Wilson | August 29, 2021

The U.S. Securities and Exchange Commission has reportedly put its ink on a $125,000 agreement with blockchain analytics entity AnChain.AI, to assist in supervising and regulating the DeFi sphere. 

Specifically revealed by Forbes on August 27th, an AnChain.AI firm representative reportedly offered confirmation regarding the deal with the federal regulator, further sharing that both parties have the choice to sign up to five separate 1-year contracts for $125,000 individually, or $625,000 overall. The first contract has been underway since May. 

“The SEC is very keen on understanding what is happening in the world of smart contract-based digital assets.  We are providing them with technology to analyze and trace smart contracts.” Co-founder and current Head of AnChain.AI – Victor Fang – reportedly remarked. 

The news regarding the completed deal between the regulatory agency and the blockchain entity reportedly surfaced after SEC chair Gary Gensler called for decentralized finance (DeFi) initiatives to complete the registration with the agency, sharing that they achieve decentralization in numerous parts “but highly centralized in other aspects.”

Gensler additionally claimed that DeFi platform developers and others have the chance to be a part of a centralized team, operating under the scope of the SEC’s regulatory umbrella.

The SEC further disclosed details surrounding its first case with the involvement of securities utilizing DeFi technology, which led to an enforcement action. 

Per insights generated by CoinGecko, the sector reportedly has a market capitalization of over $126 billion at the moment, with Uniswap securing the top spot in the list of biggest decentralized exchanges by volume, having $1 billion DeFi tokens traded in the last 24 hours. 

Its UNI token also takes the leading spot with a $14.2 billion market cap.

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