The United States Securities and Exchange Commission (SEC) wants to purchase a blockchain forensics tool that will grant monitoring of smart contracts protocols, and already made a public solicitation asking for software companies to present their proposals.
It's a clear attempt of the American regulator to manage and monitor control on the smart contracts from decentralized finances (DeFi) projects across the Crypto space. The DeFi ecosystem have grown a lot and the authorities on United States are on the lookout for them, that tool will evaluate more this DeFi protocols and give them a better inside view also possible faults or penalization to make them enter in action.
They feel threatened by this smart contract protocols that give decentralized lending power to users worldwide and specially in U.S and that Forensics Blockchain tool may help them look for possible problems or attempt to lure people.
The software firms that are interested to offer the tool to the Yankee regulator have until August 13, 2020 to let regulator knows about their proposals and their tool must have the followed specifications:
analyze smart contract logic, like contract purpose, token sale specifications, purchase and sale restriction, whitelisted or blacklisted addresses and permission management. It's also looking to identify contract modifications performed with administrator keys.
Security and vulnerability analysis will be appreciated on the tool's capabilities but aren't mandatory.
The blockchain product asked to the software firms by SEC must allow the regulator government harm to monitor smart contract codes, giving them an inside eye to DeFi world, this just show how this market have grown and the hability to offer lending services in automated maker protocols is standing up giants that want to watch closely the ecosystem.
The traditional ways of lending are slowly getting left behind, the use of decentralized finances (DeFi) is growing a lot mostly because the modalities offered to users which just need a collateral in crypto to apply for a lending with no middleman interference and complete anonymous.
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This shows, that governments are after the money. All other bad things they say, about crypto banning, is like saying "boohh", to the babies, to scare them, and make them eat.