The SEC has hired a company out of California named 'AnChain AI' and begun a 5 year contract reportedly costing $625,000 - with the goal of implementing greater oversight over the world of decentralized finance platforms (aka DeFi).
Company CEO and co-founder Victor Fang says they "will provide the technology to analyze and track smart contracts". AnChain AI says their software uses artificial intelligence and machine learning, and includes a tool that flags potentially suspicious transactions and wallets.
Fang says the big picture is to stop “post-incident investigations” by preventing the incidents to begin with, which he describes as “defense all the way up the upstream”.
They list Microsoft and crypto exchange Huobi as clients.
The SEC Has Not Yet Commented On The Deal, But Recent Quotes From It's Director Give Us Some Insight...
Since April of this year Gary Gensler has been the director of the SEC, and he isn't new to Bitcoin - he taught a class on it at MIT. So many give him the benefit of the doubt when he says the organization's goal is always to protect investors.
With so many politicians clearly uneducated on crypto, supporters hope that his knowledge about Bitcoin will translate into common sense regulation actions.
Gensler recently spoke to the Wall Street Journal, where he stated that DeFi projects are not immune to regulation, and aren't as decentralized as many believe - often having some centralized elements.
Likewise, even if the app itself is decentralized, if a small group of developers make all the decisions for it, that's a form of centralization as well.
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Author: Mark Pippen
London News Desk / Breaking Crypto News
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