SEC seeks blockchain analysis service

The Securities and Exchange Commission wants a better way to analyze blockchain transactions.

In a Jan. 31 sources sought announcement, the SEC said it is looking for a subscription service that would help it monitor risk, improve compliance and inform policy with respect to digital assets.

The service would extract and parse blockchain data so it could be more easily reviewed. Specifically, it would provide regular data extracts for the most-widely used blockchain ledgers; clean up, verify and normalize the data for review; enable data sharing; and allow for search, visual/graphical exploration, and analysis -- including attributing an owner to a particular address.

Besides the analysis service, the SEC wants suppliers to provide an overview of the processes and tools they would use to extract convert and verify the data.

The SEC has been wrestling with policies related to innovative securities products, such as cryptocurrencies and initial coin offerings, with some lawmakers calling for regulatory clarity regarding the new offerings. In October, the Commission launched a Strategic Hub for Innovation and Financial Technology (FinHub), a portal to address changes in the securities industry driven by new technologies, including blockchain.

Responses are due Feb. 14.