Following the SEC chair’s statement about his desire for the SEC to perform oversight functions over the DeFi market, America’s top financial watchdog is taking a significant step in achieving that goal.
SEC Partners With Analytics Firm
It has now reached an agreement with Anchain.AI to achieve its DeFi supervision objective. The blockchain analytics revealed that the deal is for five years, and it is worth about $126K per annum, totaling about $630K. Recall that the SEC chair previously told an interview that “there are some persons whose only responsibility is promotion and administration and they are rewarded for their efforts.”
Commenting on the news, Anchain CEO, Victor Fang, stated that “we are providing the SEC with the tools for proper tracking of smart contracts to aid their keen interest in smart contracts digital assets.” Anchain is well known for tracking illegal digital asset transactions among DeFi projects and crypto exchanges.
SEC Prepares For Tough Measures On DeFi
Past developments (especially the crypto infrastructure bill amendment and Gensler’s statements regarding the DeFi industry) suggest that SEC is planning more stringent measures for the DeFi space. The DeFi market has grown in the last few years to become a multi-billion-dollar sector.
Uniswap accounts for the largest volume of daily DeFi transactions, which is estimated to exceed $1b, and DeFi assets on Uniswap are valued at about $83b. Many businesses might close shop because of the high levels of scrutiny, and there will always be complications in DeFining the policies that surround it.
But in truth, the SEC’s desire to have oversight functions over this sector shouldn’t deprive it of growth. As SEC’s research unfolds, it is becoming increasingly likely that SEC will classify DeFi smart contracts as securities which isn’t a good omen for this nascent industry.
The financial watchdog keeps making efforts at regulating the digital asset space. Recently, three promoters of a crypto-related Ponzi scheme were slammed with a fine of $12.5m because of their involvement in arguably the most fraudulent crypto-related investment scheme in history.
India DeFi Adoption Is The Sixth-Highest Worldwide
A new analysis data revealed that the United States has the highest DeFi adoption, while India ranks sixth. The data further revealed that high-income countries with more knowledge of the crypto market rank higher than developing countries for DeFi adoption. However, the latter ranks higher for cryptocurrency adoption than the former.
Chainalysis also discovered that the volume of DeFi transactions is usually heavy, which suggests that wealthy investors are now more interested in this aspect of digital currencies than the entire digital asset category. 65% of all DeFi transactions for the last quarter were done by institutional investors, whereas institutions were only involved in 50% of all digital currency trades within the same quarter.
Apart from Vietnam, India is the second-highest DeFi adopting country among the second-class economies. Chainalysis analysis also revealed that peer-to-peer platforms are now the key drivers of the crypto market as they account for more than 90% of crypto adoption globally. As the DeFi market grows, Blockchain will continually grow in popularity and use cases in the coming years.
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