Data management is becoming more important
The SEC has been looking for firms that can analysis readable crypto data on the blockchain, according to information provided from a tender notice stating that:
“The U.S. Securities and Exchange Commission (SEC) is issuing this notice as a means of conducting market research to determine the availability and technical capacity of large and small businesses to provide blockchain data to support the SEC’s efforts to monitor risk, improve compliance, and information Commission policy with respect to digital assets. “
Moreover the SEC thinks that:
“Seeking of information for potential sources in order to support the goals of acquiring data for the most widely used Blockchain ledgers. This is including the universe of available information and transactions details. This has brought the SEC to start looking for data sources like subscriptions that can extract data from the Blockchain and parse the data to make it easily reviewable. The SEC requires information from a vendor’s ability to provide all requested data but also an the overviewing of the processes that are used to extract data. This will be then converted data into a reviewable format, together with a verification process that will ensure that no data will be completeness and accuracy due to the data transformation tools and processes applied.”
All responses from the SEC is expected to be released around the 14th of February in order to see what are the follow ups of the SEC on the crypto industry. There has been information regarding the exerted jurisdiction over Initial Coin Offerings(ICOs) and has thus designated two cryptocurrencies as being non-securities, which is Ethereum and Bitcoin.
The data from the Blockchain will be able to assist in the determination of crypto ownership. This would be useful for determining a crypto token from a security token, as the SEC has stated that the more Decentralised it is and the more distribhuted the ownership, the less likely it will be a security. There might also be other areas whereh the SEC is concerned about like price manipulation, which is one of the reasons for the rejection of the bitcoin and crypto ETFs. As they think that the claimed inability to surveil trades and to determining where there has been any price manipulation is not suitable enough.
They further specifically required the ability to provide attribution data, which means to whom the addresses belong. This is not a difficult task in most cases if it is the analytical methods that are being used. The SEC sees the Blockchain as useful and the suggestion of an ETF is perhaps not out of the question now that regulations will account for a considerable amount of trading volumes. Which falls into the surveillance agreement that was signed by seven different crypto exchanges.
The Blockchain analysis capabilities will provide better insights into the crypto economy. As this will allow the SEC to make better information and thus better decision making on different aspects that may significantly affect the blockchain growing ecosystem.
What do you think of the SECs gathering of data on the blockchain? Feel free to leave a comment down below.