SEC Plans To Use Blockchain Solution To Create Transparency In The Crypto Industry



Last Updated: February 4, 2019 at 10:47 AM EST
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A recent release by the Securities and Exchange Commission (SEC) noted that the agency is seeking companies that can provide a blockchain solution for the transparency of the crypto industry.

Creating Transparency In The Crypto Space With Blockchain Tech

The U.S. Securities and Exchange Commission is searching for companies that can provide blockchain solutions with the capacity to derive insight from available data and inclusion of attribution data. This indicates that the address and details of crypto owners and crypto wallets will become transparent.

The released document stated that the SEC is seeking information for potential sources to support the goal of acquiring data for the most widely used blockchain ledger, including the universe of available information and transaction details.

The ‘sources sought notice’ released at the end of January, aims at the use blockchain solution by the SEC to aid its efforts to monitor risks as well as improve compliance of digital assets. This will essentially make the crypto market more transparent as the Securities and Exchange Commission will be able to identify owners of various cryptocurrency wallets.

Though the innovation that the SEC plans to introduce will create transparency in the crypto space, however, it will be negating one of the main benefits that attracts most investors to cryptocurrency at the moment. The advantage of privacy from a central government or authority that can erode activities on crypto has made it more attractive to investors. In essence, the implementation could make investors quite uneasy.

The SEC and The Crypto Industry

The SEC has been prominent in the crypto market in recent time especially concerning crypto regulations as well as Bitcoin ETF applications. Bitcoin ETF applications and rejections have made the SEC more popular in the crypto space. The crypto bear market that has been prevalent for over a year was adduced to be curable with the approval of a Bitcoin ETF, but an approval remains lingering. There are speculations that the industry might not see any approval of a Bitcoin ETF till 2020.

In recent time, CBOE-Bitcoin ETF application that had been postponed several times was withdrawn because of the U.S. government shutdown. The application has again been refiled as the government resumes temporarily and the Congress continues with an effort to resolve the funding of the U.S. Mexico border.