The United States Securities and Exchange Commission (SEC), has recently signed with AnChain.AI, an analytics firm to assist in observing and regulating the Defi industry. As revealed, the contract is being valued at $125,000 per annum and will be lasting for five years.
In accordance with what was revealed by a spokesperson of the company, AnChain.AI, the blockchain analytics company focuses on tracking illegal activity across crypto exchanges, traditional financial institutions, and Defi protocols.
Victor Fang, the CEO, and Co-founder of AnChain.AI mentioned the fact that the Securities and Exchange Commission is very interested in knowing what is happening in the world of Defi, and said:
“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.”
The $125,000 valued contract is going to last for five years and is surely driven by the growth in the Defi sector.
This contract has come at the heel of the interest of the Securities and Exchange Commission (SEC), and its major action against the Defi forum was back in the year 2018, when it closed EtherDelta, a Defi exchange that is deemed to be operating illegally.
In addition to this, it should be noted that Gary Gensler, released a warning that Defi operations are not immune from probes just because they possess the tag decentralized in an August interview with The Wall Street Journal.
Addressing the fact that a group of folks has governance and fees, he 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.”