While U.S. investors are waiting for a bitcoin ETF to be approved, American financial regulators are looking to make the market more transparent. The Securities and Exchange Commission (SEC) is seeking a service that will identify the owners of wallet addresses for multiple cryptocurrencies.
The SEC Wants Crypto Transaction Details
The SEC has issued a ‘sources sought notice’ on January 31, searching for companies that can provide blockchain data to support its efforts to monitor risk and improve compliance of digital assets. The regulator is seeking a service for acquiring data on the “most widely used blockchain ledgers, including the universe of available information and transaction details.” The desired sources should provide the SEC with the capability to derive insights from available data, including “attribution data (i.e. to whom a particular address belongs).”
Additional required capabilities by the SEC are the provision of data extracts on a recurring basis for the most widely used digital assets based on transaction volume; cleaning and normalizing the data to enable review and exploration; and the means to demonstrate data is accurate and complete. For this, the SEC wants a verification method it can use to ensure there is no data loss due to the processes designed to make the information easily readable.
Moving Forward on Bitcoin ETF?
The SEC is also looking for information on which of the most popular digital assets data can be provided on, options for data sharing and data transmission, processes and tools used to aggregate and compile the data, and other metrics mentioned in the document.