In a call for bids to software companies on July 30, the U.S. Securities Exchange Commission said that the forensic tool must be able to “analyze and detail code within blockchains and other distributed ledgers.” The SEC is looking to identify contract changes performed with administrator passwords and issues like whitelisted and blacklisted addresses. The regulator also wants to know how token sales funds are disbursed.
The tool would support the SEC’s efforts “to monitor risk and improve compliance.
The SEC noted that the blockchain forensic tool would support its efforts “to monitor risk, improve compliance, and inform Commission policy with regard to digital assets.” Companies have until August 13 to submit their proposals for the forensic tool. However, companies classified as “small businesses” that have a value of $30 million or under are being considered for the tender, it said. The U.S. securities regulators want analysis tools to give them the ability to track the movement of crypto transactions more closely, particularly those contracts in the multi-billion-dollar decentralized finance (Defi) industry. The SEC has targeted crypto companies that raised funds via illegal ICOs. There have also been instances where SEC-approved blockchain companies secured millions in seed funding.
The SEC awarded the blockchain analytics firm Ciphertrace for its crypto-tracking capabilities.
The Securities Exchange Commission, which recently awarded a contract to blockchain analytics firm Ciphertrace for its crypto-tracking capabilities, aims to become a better player in a crypto industry where it has always been on the backfoot. According to a notice published last month, the Ciphertrace deal is limited to blockchain forensics and intelligence targeting Binance’s native coin BNB and all the tokens on the Binance network. The SEC had sued many crypto companies for offering illegal Initial Coin Offerings. The encrypted messaging giant Telegram also faced charges for conducting an unlawful ICO for its cryptocurrency. However, the company pulled back its project.