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DeFi Sunday: The SEC is trying to understand decentralized finances

The US SEC has signed an agreement with the analytical company AnChain.AI, which is to help them monitor and regulate the DeFi industry.

The SEC will shed light on the DeFi industry

A spokesman of AnChain.AI confirmed to Forbes that they have entered into an agreement with the US federal regulator SEC. The agreement assumes that the contract can be extended for up to 5 years and the SEC will pay a total of $ 625,000 ($ 125,000 per year) for this cooperation. The SEC reportedly wants to understand what is happening in the world of decentralized finances and AnChain.AI will provide them with technology to analyze and track smart contracts.

DeFi concept DeFi concept, Source: shutterstock.com

The collaboration between the U.S. government agency and a private blockchain company comes after recent statements by SEC Chair Gary Gensler. He said that DeFi projects should be registered with their agency, as he said they were highly centralized in some aspects. Companies involved in this sector should present their team, which would then fall within the SEC's regulatory framework. This month, SEC accused two Florida men and their companies in the Cayman Islands of selling more than $ 30 million in unregistered securities through smart contracts and DeFi technology.

“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.” Gary Gensler, SEC chair

AnChain.AI is a recognized blockchain analytical company that, among other things, monitors illegal crypto transactions on exchanges and also in DeFi protocols. The new agreement has certainly made an interesting financial improvement, and the cryptocurrency community certainly hopes that thanks to their data, SEC will reach quality regulatory solutions.

The popularity of DeFi is growing and the regulator should make sure that the rules do not unnecessarily slow down the game

SEC appears to be intensely focused on the DeFi industry and individual projects. Among other things, they would like to obtain data on all Proof-of-Stake token holders, which is of course almost impossible due to anonymity in decentralized finances. It is the DeFi company that has direct contact with the blockchain that could help the SEC understand these innovative technologies.

DeFi has gained great popularity in recent years and has become a multi-billion dollar business. We are currently talking about a value above $ 82 billion, with the largest exchange, Uniswap, processing transactions with a daily volume of more than 1 billion. This adoption is led mainly by experienced crypto traders and investors. This is also reflected in the fact that DeFi adoption is more visible in higher-wage countries. This is data from a survey by Chainalysis, which deals with blockchain analysis.

The company's findings are based on its global DeFi adoption index in 2021, which evaluates up to 154 countries. The USA, Vietnam, Thailand, China, the United Kingdom, India, the Netherlands, Canada, Ukraine and Poland reached the top ten.

Slavomír is working in the field of cryptocurrencies since 2018. As a Co-Founder and Chief Marketing Officer of Dollero Technology, which is currently developing a crypto exchange ...

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