The US Securities and Exchange Committee has initiated a research into the need for a search tool to keep track of the data on major blockchains related to various cryptocurrencies.
The financial regulator has decided and planned to make the market more transparent with regards to the identification of crypto wallet holders.
The SEC released an official solicitation notice on January 31, 2019 which stated that it was issued keeping the objective in mind to determine the accessibility and technical capabilities of the major and minor businesses in the market and to provide blockchain data to support the SEC’s efforts to monitor risk, improve compliance, and inform commission policy with respect to digital assets.
The SEC authority is basically looking forward to holding control and ability to recognize the digital assets of various crypto wallet holders, the addresses and their link ups to related cryptocurrencies. This is an angle which might not sit comfortably with various crypotcurrency investors and owners but for the time being, this is the only direction which has been recognized as legitimate.
The website also stated:
“The SEC is seeking information for potential sources to support the goal of acquiring data for the most widely used blockchain ledgers, including the universe of available information and transaction details.”
The suppliers/vendors are further expecting that the SEC will demand to access the data from the most widely used blockchain ledger. The SEC is also requesting that they are required to be provided with the code of conduct which is being initiated to carry forward the procedure and also the process being used to extract the data and convert in reviewable format.
This is to assure that there is no loss of data due to data transformation. Moreover, the requirement for the data provision mentioned by SEC website includes;
i) Provide data extracts on a recurring basis for the most widely used blockchain ledgers based on transaction volume.
ii) Cleanse and normalize data to enable review and exploration. Provide capability to derive insights from the available data, including attribution data [i.e. to whom a particular address belongs].
iii) Provide a means to demonstrate the data provided is accurate and complete
The SEC has recently remained very prominent in the cryptocurrency universe. A few days earlier, CBOE authority resubmitted and put forward their proposal to the SEC of the US for the launch of its first Bitcoin ETF aka Exchange-Traded Fund after partnering up with VanEck and SolidX.