The US SEC Is Outsourcing Blockchain Services For Tracing Cryptocurrency Transactions


The US Securities and Exchange Commission (SEC) is aiming to widen its scope of overseeing the operations of Cryptocurrency markets. Additionally, the SEC is planning to closely monitor Blockchain platforms to trace the movement of Cryptos to and from owner’s wallets.

For this reason, the US financial regulator is soliciting for a Blockchain company to help its officers access and handle Blockchain and Crypto data.

Hence, Blockchain experts have an open job vacancy in one of the leading Federal institutions in America.

Monitoring Crypto Transaction Details

In a ‘sources sought notice’ dated January 31, the US SEC announced their intention to partner with companies that offer Blockchain data services. This solution would help the regulator to improve compliance and monitor risks of Digital Assets.

The tool pack to be created will be used in deriving insights from available data such as attribution data that shows the owners of private addresses, and other relevant information. Further, the platform will have tools that can integrate with most widely used Blockchain ledgers such as RippleNet, Bitcoin Cash, Cardano, etc. This would ensure that the SEC is monitoring a vast majority of Cryptocurrencies.

The Service Has To Be Reliable And Able To Process Real-Time Data

The US SEC is redesigning its tools to incorporate the nascent Blockchain technology and the emerging Cryptocurrency usage. Hence, the service provider that would like to partner with the commission will be required to be capable of providing data extracts on a recurrent basis.

Additionally, they will be required to demonstrate that the data they give to the SEC is complete and accurate. Further, the Blockchain experts will be required to clean and normalize data so that other officials in the commission can explore and review the data in a readable format.

SEC Is Set To Rule On Bitcoin ETF In 240 Days

US investors are gearing up for a possible Bitcoin ETF approval following the filing of the application by Cboe in partnership with Solidx and VanEck. There is a link between the expected ETF case and the search for a Blockchain data handling partner. This is because the commission will be monitoring the ETF transactions as per the requirements of the law.


In regards to the Bitcoin ETF, the commission is still deliberating on key aspects that underpin an ETF approval. These issues include; options for data transmission and data sharing, tools, and processes used to compile and aggregate data, among other concerns of data handling for ETF transactions. Since there is a chance that a new partnership will address these concerns, chances are high that approval may be in the offing.

The SEC Is Becoming Liberal

The US SEC has been deemed as a major roadblock for the advancement of Cryptocurrencies in the country particularly after declining previous Bitcoin ETFs proposals. However, in September 2018, President Donald Trump appointed a Crypto-friendly executive- Elad Roisman who is a Republican from the State of Maine. This and other appointments show that once ETF proponents meet a set threshold, the commission would give a green light.

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