Gary Gensler believes some decentralized finance (DeFi) projects fall within the jurisdiction of the US SEC.
SEC taps a blockchain analytics firm to investigate DeFi transactions
The United States Securities and Exchange Commission (SEC) has signed a deal with blockchain analytics firm AnChain.AI earlier today. The deal would see AnChain.AI help the regulatory agency monitor and regulate the DeFi sector.
According to a Forbes report earlier today, the deal is worth $125,000, with five separate one-year $125,000 option years for a total of $625,000. AnChain.AI CEO and co-founder Victor Fang commented that “The SEC is very keen on understanding what is happening in the world of smart contract-based digital assets…so we are providing them with technology to analyze and trace smart contracts.”
Gensler feels some DeFi tokens are securities
This latest development comes a week after the SEC chair Gary Gensler said some DeFi projects fall within the regulator’s jurisdiction. Gensler has recently taken an interest in regulating the cryptocurrency sector, and he had asked the Congress for more power and resources to increase its oversight of the market.
Gensler said, “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.”