The SEC has issued a tender for companies to apply for setting up nodes to monitor on-chain Off-the-shelf companies (COTS) with tailor-made products and solutions will be eligible to apply. It essentially means that it only includes existing companies which are already engaging in research and monitoring activities.
The SEC wishes the company to “support its efforts to monitor risk, improve compliance, and inform Commission policy with respect to digital assets.”
According to the press release, among other things, it included,
- At a minimum, the subscription shall include the Bitcoin and Ethereum blockchains and,
- In addition, the subscription shall include as many as possible of the following blockchains:
Bitcoin Cash, Stellar, Zcash, EOS, NEO, and XRP Ledger.
The SEC will is looking for companies that gather data like hash rate, blockchain explorers, transaction fees, and so on. Currently, there are several players involved such services like Messari Crypto, Coinmetrics, Blockchain Info, The Tie, and so on.
It comes as a good piece of news for the crypto industry as the SEC will be able to make an informed decision. Nevertheless, as Nic Carter, a crypto-analyst, noted that this should be used confirmation for the Government doing it. However, Mati Greenspan, Senior Analyst for eToro noted,
The government outsources a lot of stuff that they can’t do on their own. It still counts as them doing it.
Why is the SEC so Interested?
The SEC has also asked for the inclusion of other cryptocurrencies if and when required.