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US SEC Solicits Blockchain Analytics Companies for Data Review

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US SEC Solicits Blockchain Analytics Companies for Data Review

The United States Securities and Exchange Commission (SEC) is soliciting sources for blockchain data and its analysis. This was issued in a statement released by the agency on Jan. 31.

In the statement, SEC is trying to find businesses that are ble to provide blockchain data to support its compliance enforcement and risk monitoring activity, as well as to inform the commission about digital assets. In January, the agency announced that cryptocurrencies are one of its top examination priorities for the current year.

According to the statement, the agency expressed interest in sources for data concerning the most popular blockchain ledgers. Apart from providing the data, the companies are also required to parse the data for ease of reviewing.

Subsequently, the SEC also requires information concerning an overview of the data extraction, conversion and verification processes. The agency also asks the participating companies to outline their “capability to derive insights from the available data,” including the identification of the owners of crypto addresses.
Companies willing to respond to the agency’s request are required to send their response via email by Feb. 14 containing a brief capabilities statement package, the document notes.

In August 2018, an agent of the U.S. Drug Enforcement Administration (DEA) noted that while privacy-focused cryptos are more anonymous than Bitcoin (BTC), the agency has still ways to track them. The agent, Lilita Infante, declared:

“The blockchain actually gives us a lot of tools to be able to identify people. I actually want them to keep using them [cryptocurrencies].”
Managing partner at Andreessen Horowitz, Scott Kupor, also suggested in mid-July 2018 that “Bitcoin is law enforcement’s best friend” due to the ability to track illicit transactions on the blockchain.

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