US SEC Seeking Big Data Tool for Major Blockchains

The U.S. Securities and Exchange Commission (SEC) is seeking a tool to provide a Big Data view across major blockchains.

In a solicitation notice published Thursday, the regulator said it is looking for both small and large businesses who can provide data for the “most widely used” blockchain ledgers based on transaction volume, in order to “monitor risk and improve compliance” related to cryptocurrencies.

The SEC said it requires the data in an “easily reviewable” format, along with an overview of how the information is extracted and converted to ensure “there is no loss in data completeness and accuracy due to the data transformation tools and processes applied.” Notably, the agency is seeking to identify transaction details among “the universe of available information.”

Interested vendors should respond to the SEC by Feb. 14, according to the announcement.

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

Last October, it set up the Strategic Hub for Innovation and Financial Technology (FinHub) to enable fintech startups, including those launching initial coin offerings (ICOs), to navigate the legal implications of their products.

The commission has also said it soon plans to release “plain English” guidance on when and how cryptocurrencies may be classified as securities to help developers determine on their own for any potential token offering.

Another top U.S. regulator, the Commodity Futures Trading Commission (CFTC), said it was looking to learn more about ethereum in December, ranging from its technology to how it’s used, in order to ensure compliance of derivatives markets based on the cryptocurrency.

U.S. SEC image via Shutterstock