The incipient regulatory wave on technology blockchain it is in an unprecedented international boom. The cause of this situation is due to the non-stop growth of multiple decentralized applications and the adoption of DeFi as a real alternative for retail investors. The United States Securities and Exchange Commission (SEC) is leading the way on numerous initiatives, will DeFi be the next target?
According to reports, the SEC signed an agreement with AnChain.AI to learn more about the world of decentralized finance.
The report indicates that the initial contract is for a period of one year and the agreed sum amounts to 125 thousand dollars for the work, but AnChain.AI could sign five more annual contracts with the SEC for a stipulated total of $ 625,000.
AnChain.AI is a technology-focused startup blockchain, whose work axis is the learning and use of Artificial Intelligence to collect data, whose objective is to monitor the illicit activities that typically occur on cryptocurrency exchanges, DeFi protocols, and traditional financial institutions.
AnChain.AI and its work against illegal activities
In addition to cataloging and monitoring known wallets linked to illicit actors, AnChain.AI has built a predictive engine that can be used to identify unknown addresses and transactions that could be suspicious.
Their software works on the basis of Artificial Intelligence that they assure that they would be the eyes of the SEC against eventual violators of the law.
All of this is part of the goal of going beyond “post-incident investigations” and making them “preventive”, assertions that are questioned but cannot be suppressed until a clearer picture is available.
In addition to government customers, AnChain.AI technology is also being used by exchanges of centralized cryptocurrencies and traditional financial institutions.
What are the SEC’s intentions with this deal?
First, the SEC has an interest in knowing what are the movements that occur in the DeFi ecosystem and what kind of operators enter the ecosystem.
The deal, on the other hand, comes on the heels of the SEC becoming more interested in DeFi as it matures rapidly and grows in size.
An indication of this interest is the non-stop growth of total value locked in different protocols. The industry currently manages more than $ 82 billion, and the largest decentralized DEX, Uniswap, currently processes more than $ 1.8 billion in daily transactions.
There are also many cryptocurrencies that could be included by the SEC as “securities” which would generate a conflict between the participants involved, a situation akin to the iconic SEC vs. Ripple for the issuance of XRP tokens.
Another aspect to take into account is the complexity of these platforms, Fang pointed out that the Uniswap platform is actually an amalgam of 30,000 separate smart contracts who run the swap real of tokens.
SEC actions against DeFi
The SEC’s first major action against the DeFi space, this one came in 2018, when EtherDelta, a exchange decentralized, which was later considered to be executing operations illegally.
Earlier this month, the SEC filed its first charges against the DeFi Blockchain Credit Partners firm and its two creators. Since then, the SEC remained vigilant in the DeFi ecosystem but without the tools or data necessary to regulate its operations, nowadays seeks to clarify the panorama under specific resources.
In an interview with The Wall Street Journal, SEC Chairman Gary Gensler warned that DeFi operations are not immune from oversight because they use the word decentralized, and that:
“There is still a core group of people who are not only writing the software, like open source software, but often have governance and fees … There is an incentive structure for those promoters and sponsors in the middle of this.”
Gensler hinted that There is an internal system of creators and later they benefit from the delivery of tokens as a reward to certain providers of the project.
Don’t forget that earlier this month, the Senate passed a bipartisan bill, which included a broad definition of “broker” in a set of regulations targeting the cryptocurrency ecosystem. If it eventually passes the Chamber, the cryptocurrency industry could take a major hit.
The post SEC signs agreement to investigate DeFi transactions was first seen on BeInCrypto.