US SEC seeks blockchain data to study and monitor activities

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The U.S. Securities and Exchange Commission (SEC) recently announced it is looking for companies that will provide data and analysis on the blockchain industry. SEC announced through a “source out notice” published on January 31.

According to the statement, SEC is trying to find companies that will provide it with blockchain data which it intends to use in supporting its efforts in monitoring risk and improve compliance of digital assets. The agency is also seeking data on popular blockchains to study and monitor their transactions.

The document read:

“‘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 data and transaction details.”

The agency has asked the participating companies to provide “capability to derive insights from the available data including attribution data.”

Additionally the agency required the provision of data extracts on a recurring basis for the most widely used digital assets based on transaction volume. This includes cleaning and normalizing the data to enable review and exploration. SEC also wants the capability to demonstrate whether the data is accurate and complete. For this, the SEC wants a verification method that can be used to make sure there is no data loss while trying to make the data easily readable.

The companies are required to get the data and break it down for ease in reviewing. All companies interested in the request have until February 14 to send their response through email. The documents state that all response emails should contain a brief capabilities statement packages.

The news comes soon after the SEC said that cryptocurrencies would be one of its examination priorities this year, including “concerns related to custody and safekeeping of investor assets, omitted or misleading disclosures regarding the complexities of the products and technology, and the risks of dramatic price volatility.”

Recently, the agency has been the center of attention as many people wait to hear what its final say is on cryptocurrency-based exchange-traded funds (ETFs). The SEC is expected to have decided on the matter by February 27, 2019.