SEC looking for more tools to track crypto

[hongchao123]

SEC want to control and track everything as usual

[mikeauerbach]

I wish the SEC good luck. Technologies is changing faster than regulators can keep up.

[jademaxsuy]

I wish the SEC good luck. Technologies is changing faster than regulators can keep up.

Lol, well we know that the government was left behind with the technology tha other private sectors had. They only will just react when it is new to them like cryptocurrency. This is why keeping in tract with the new technology make it more hard for the government. However, i think it is still manageable at the moment and the government could still coup up with it. They had the resources available and they can also tap the private sectors for a help im regards to cryptocurrency tracking tool.

[Finestream]

I wish the SEC good luck. Technologies is changing faster than regulators can keep up.

When government regulate something, it would give them a freedom to closely monitor and track it, even in crypto, they can do as they have the power and resources to do it. Even the mixers that we enjoy now on hiding our transactions either legal or illegal might be gone in the future.

The government does not only have the power to track, they also have the power to deemed something illegal when it's impossible for them to track it.

[bitbunnny]

This is the logical step, if we like it or not. Cryptocurrencies develope all the time becoming more and more accepted and governments have the need to keep that under control. That doesn't necessary have to be wrong as long as doesn't supress the freedom but is aimed against misuse and illegal activities, then it's for the benefit of all users. However, let's wait and see how successful this is going to be.

[Yaunfitda]

I wish the SEC good luck. Technologies is changing faster than regulators can keep up.

Hehehe, well I would agree, this is going to be an evolving technology and it will be race as to who are going to be on top until something comes up to out maneuver the other side. Can SEC keep up with the race? Who or what company are going to step up and do the "dirty task" for them? Of course, centralised exchange can be pressured to give up everything on SEC. But still a lot of work for them. Let's see how everything will pan out.

[MCobian]

It sounds bad to me what the SEC wants, as many people think the government wants to control everything.Cryptocurrencies are no exception,
I am not surprised by this news. Indeed, sooner or later the government will take this action. If the SEC manages to get the tools to track crypto,
there will be no more freedom in crypto transactions. Because of all transactions is under government supervision.

[TheUltraElite]

This could have a good side to it too. For example regulation in the stock market is the reason why pump and dump is not always possible to such an extent that it becomes a eye sore. This happens a lot in crypto - like every other day you can find 400% gains on a certain shitcoin that you never heard of.

Again the money laundering and criminal money hopping issues is also there which need to controlled. Of course the fear that people have that legitimate users are going to fall in trouble is less because the regulators know that legit users exist and thus they make their systems in such a manner that such users are not punished but criminals are detected. That way many scammers are hackers could be brought to punishment since crypto has become a safer haven for them than fiat.

IMO, this can be a new step in crypto if it is realized in the proper manner.

[fiulpro]

According to this post: https://beta.sam.gov/opp/f11c3e2445d94c429dbcce7019cc91d1/view?keywords=%22smart%20contract%22&sort=-relevance&index=&is_active=true&page=1

Description
The United States Securities and Exchange Commission (SEC), 100 F Street, NE, Washington, DC 20549, intends to procure a distributed ledger technology (DLT) smart contract analysis tool to analyze and detail code within blockchains and other distributed ledgers, in support of its efforts to monitor risk, improve compliance, and inform Commission policy with regard to digital assets.

The North American Industry Classification System (NAICS) code for this acquisition is 541511 and the small business size standard is $30,000,000. This combined synopsis/solicitation is set aside 100% for Small Business.

And they are probably looking to buy some smart contract or blockchain analysis tool to help them track those illegal activities (non-registration) or even more. Obviously, they want to follow every trail specially for big companies involved like exchanges.

The fact is :
The already have enough tools to track the cryptocurrencies and transactions and with the KYC enabled wallets it's more easier than ever .

What they actually need to do is :
-To get some crypto enthusiasts working with them
-Keep in mind the thin line between Centralization and helping the community to track these behavior

Problem is :
They have to first state how they will go on about tracking the illegal activities ?? They would essentially have to track everyone , literally Everyone then join the dots.

The thing is this way it will be nothing but a highly controlled cryptocurrency which would totally kill the whole idea of privacy.

I do think they have to stay away from the cryptocurrencies for a while since only 10% of Bitcoins is involved in the illegal activities and for this the privacy of rest 90% should not be compromised.

[Vatimins]

     Well, things like these are already to be expected since we already have know for a very long time that ever since bitcoin made a huge wave and got noticed, big people and most governments wanted to have control over bitcoins and everything related to it. The big people wants to stay in control. Security has been used a reason way too much and they are taking advantage of this reason. This may sound as something out of a movie but it's true enough that lots of people are slowly realizing it. This is my take on everything happening today. Not just in this industry alone.

[supine]

They just want to track everyone so they could know who would they tax on crypto industry.
They now want to tax everyone and everything seem's like we would soon be seeing more tax on our hand.
I also read that here in the Philippines vlogger or youtuber would be taxed as well.

[carlisle1]

They just want to track everyone so they could know who would they tax on crypto industry.

Probably, the main thing is to monitor every movement from this industry and see where they can get the money in terms of taxes.

They now want to tax everyone and everything seems like we would soon be seeing more tax on our hand.

Expect that to happen as they are really looking for additional resources to gain more taxes, crypto space won't escape that realities.

I also read that here in the Philippines vlogger or youtuber would be taxed as well.

Everything that money concern, government will be there to tail them up.

[cheezcarls]

One common reason for SEC in doing this is because investors are now turning into cryptocurrency, blockchain and DeFi space, in which taxing them would be a challenge due to the market condition. On top of that, token sales are having some lack of regulation in which more and more scammers are easily exit scamming the hard-earned money of investors.

I honestly that it does make sense for them to acquire more tools in tracking down our digital assets. It's still a challenge for them until now, despite they've restricted token sales in the United States.

[maxreish]

If it's for the busting illegal activities like money laundering, etc. Then SEC is doing the right thing. However, it's too hard to find such tools that may eventually track all the crypto transactions. It may take time before they may find and formulate one. Or maybe if they will prioritize those who have huge transactions to track down where those crypto coins are using, they may find a way to determined such events. Hopefully, SEC will find such tool so people won't be taking advantage of cryptocurrency's good reputation.

[vanyxeen]

On July 29, the day prior to the notice’s publication, the SEC put out a notice saying that it intended to award blockchain analytics firm CipherTrace a contract to help it track the flow of funds on blockchains.

In its notice, it said that CipherTrace’s products are “the only known blockchain forensics and risk intelligence tool that can support the Binance coin (BNB) and all tokens on the Binance network.”

The SEC said that the government would “give consideration to interested parties” if they put their submissions in by “the response date of the notice,” which was...a day later, July 30.

[Kelvinid]

...
And they are probably looking to buy some smart contract or blockchain analysis tool to help them track those illegal activities (non-registration) or even more. Obviously, they want to follow every trail specially for big companies involved like exchanges.

That should actually they do, in the first place but that is very challenging for them to track this kind of environment knowing that scammer, hackers, and some sort of illegalities will use coin mixers just to keep them anonymously.

I believe the SEC don't just need only new tools to track these sort of activities but ovbiously they need the community to act as reportet once they notice this kind of scheme. But somehow I appreciate how they work with this new challenge, their role in minimizing illegalities is very important and that they need to act immediately.

[hermawan9416]

I think they can track most crypto transactions right now, can't they?

[Leonardo7]

We thought SEC was going to help us during the long bearish market as they kept postponing and rejecting various bitcoin ETF, today we don't even care about them anymore and the boom the market is doing much better. We don't want SEC anymore, tell them to leave the people alone.

[bearexin]

As time goes on, the government will be coming into the Blockchain and cryptocurrency, and before you know what’s happening there would be full regulation of the market. Someone once said to me that people think that cryptocurrency and Blockchain is out of reach for the government, but we are forgetting that these things are technologies that were created by people like us, and majority of them are now working for the government in different agencies and will be helping the government to track cryptocurrency users and other things. Anything that’s built by a man, no matter how strong it seems to be, there will always be a means to break it down if they want to.

I just hope that they don’t ruin everything someday. I do understand that the reason why they are doing this is so that they can keep people safe and it will be easy for them to trace people who are making use of cryptocurrency for bad purposes. This is part of why I never bother myself about anonymity.

[MainIbem]

The SEC is a government agency doing their job of protecting the people. Every government want to know the finances of it's citizens for purposes of tax and other regulations so it is not out of play to see the agency making inroads into tracking crypto.