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SEC Seeks More Data on Public Blockchains to Inform Policy
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The SEC is stepping up their requirements for public blockchains. Newly-released requirements released makes it so that all data must be sourced from hosted nodes rather than blockchain explorers.
The SEC has just released some new requirements for all public blockchains. From now on, all public blockchains must source their data from the hosted nodes themselves. These stipulations especially pertain to Bitcoin and Ethereum, but also to Bitcoin Cash, Stellar, Zcash, NEO, and XRP. The SEC also says that, as new blockchains gain prominence, these criteria will expand.
The new requirements come at a time when Facebook is set to release the Libra. Data sharing and compliance is a key focus for the SEC during these complicated times. The regulatory body says that more data provided from blockchains will ensure compliance, inform future policy, and also allow for proper risk assessment.
In the future, the SEC will also be looking at more data such as hashing algorithms, hashing power, mining difficulty, coin supply, and blockchain size. All data is expected to be sent from the hosted nodes through an encrypted feed and must be synced with the existing network. This will ensure that the data collected is accurate and meets the requirements of any standard financial audit.
The SEC has been getting more and more precise in their position on the cryptocurrency industry. In April, the regulatory body released a new set of guidelines for security tokens. There’s also an indication that they will be speeding up approvals for pending projects.
Do you believe the SEC will soon green-light many new cryptocurrency projects? Let us know your thoughts below.
Image courtesy of Wired.
Tim Fries
Tim Fries is the cofounder of The Tokenist. He has a B. Sc. in Mechanical Engineering from the University of Michigan, and an MBA from the University of Chicago Booth School of Business. Tim served as a Senior Associate on the investment team at RW Baird's US Private Equity division, and is also the co-founder of Protective Technologies Capital, an investment firm specializing in sensing, protection and control solutions.
