The United States of America Securities and Exchange Commission (SEC) has announced that small companies will be favored in a bidding war to create a blockchain forensics tool, set to happen soon.
This came after the announcement that SEC will purchase a blockchain forensics tool to help them in their bid to analyze smart contracts.
While giving potential contractors a view of how they want the tool to be like, SEC stated that they want it to give crude details and analyze smart contracts within various blockchains.
SEC said they want to be aware of contract changes done with administrator passwords while being able to deal with issues arising from the whitelisted and blacklisted accounts.
The government agency says it wants to be aware of the process behind token sales disbursement.
SEC ready to award the contract to a small company
SEC noted that they have been trying since previous years to monitor digital assets risks, amongst other things, and this new blockchain forensics tool would help them achieve that aim.
Therefore, SEC has called on companies to submit their bids while letting them know the deadline attached to bid submission is August 13.
According to the agency, they are looking to give the contracts to companies with a total value of $30 million or below. The government agency has always wished to keep a close eye on digital assets transactions, and this tool should be able to provide the opportunity.
The firm further discussed how their interests are keen on the DeFi sector, so tracking it is their primary aim.
Ciphertrace approved for blockchain forensics tool
Presently, the SEC has noted that they are going after firms that have acquired money illegally either through fake ICOs or through other illegal means.
There have been numerous news making the rounds that some firms approved by SEC made millions from seed funding. It should be noted that the SEC recently gave Ciphertrace the go-ahead to create a blockchain analysis tool for them.
The agency said the contract was awarded to Ciphertrace because they had fruitful and vast knowledge in tracking crypto transactions.
According to rumors, the new blockchain forensics tool that Ciphertrace is making will be specifically used to go after the Binance backed BNB and a host of other coins on the company’s platform.
With the new blockchain forensics tool, the SEC might again rid the crypto industry of fake and illegal firms.