SEC Seeks ‘DLT Smart Contract Analysis Tool’ As DeFi Becomes A Key Focus Point On Compliance


  • The United States Securities Exchange Commission (SEC) is looking for a distributed ledger technology (DLTs) smart contract analysis tool in its latest efforts to analyze and closely monitor the base code of blockchains.

The latest solicitation from the SEC comes at a time the decentralized finance (DeFi) industry is booming, and the forensic tool will be vital in assisting the commission to monitor risk, security issues on these platforms, and improve compliance of these projects. It will also help set SEC’s policies in regards to digital assets.

According to the request for an information memo dated July 30, companies with ready solutions on blockchains’ smart contract analysis have till August 13 to submit their projects.

In particular, the commission is looking for a forensic tool that can analyze the core of smart contracts and keenly provide the token sale specifications, the token type, the contract purpose, and addresses that are blacklisted and whitelisted.

This will further the regulatory power the SEC currently holds over blockchain projects as seen with the latest closure of the Telegram blockchain projects and its ICO-token, GRAM, earlier this year.

SEC awards contract to blockchain monitoring firm, Ciphertrace Inc.

In a separate document released 24 hours prior to the DLT smart contract analysis tool, the SEC confirmed it has awarded a blockchain monitoring firm, Ciphertrace Inc., a fixed price contract to provide inspection services on blockchains and track the flow of digital assets across the networks.

The statement claims Ciphertrace is the only open-source monitoring platform that offers Binance Coin (BNB) and associated coins transfer analysis hence the non-competitive request.

Read More: SEC Contracts with DARPA Funded CipherTrace to Track BNB & Binance Chain

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