The SEC wants to buy a blockchain forensics tool for monitoring smart contracts

The U.S. Securities and Exchange Commission (SEC) has put out a call for a blockchain forensics tool to help it monitor smart contracts. On July 30, the agency released a solicitation that gives software firms until August 13 to submit their proposals. 

The tool will monitor smart contract code, effectively serving as a way to keep a closer eye on the Decentralized Finance ecosystem.

THE SCOOP

Keep up with the latest news, trends, charts and views on crypto and DeFi with a new biweekly newsletter from The Block's Frank Chaparro

By signing-up you agree to our Terms of Service and Privacy Policy
By signing-up you agree to our Terms of Service and Privacy Policy

The SEC said it's looking for a tool that can "analyze smart contract logic," like contract purpose, token sale specifications, purchase and sale restriction, whitelisted or blacklisted addresses and permission management. It's also looking to identify contract modifications performed with administrator keys. 

Though the solicitation lists the qualification as "preferred not required," the SEC hopes security and vulnerability analysis will be among the tool's capabilities.

The SEC move to onboard a blockchain forensic tool comes weeks after the Internal Revenue Service (IRS) inked a deal with Coinbase to leverage its blockchain tracing software. At the time, the IRS said in published documents that Coinbase Analytics provided "enhanced law enforcement sensitive capabilities."

About Author

Aislinn Keely is a reporter on The Block's policy team holding down the legal beat. She covers court decisions, bankruptcies, regulatory actions and other key moments in the legal sphere, putting them in context for the wider crypto industry. Before The Block, she lent her voice to the NPR affiliate WFUV and helmed Fordham University's student newspaper. Send tips or thoughts on all things policy and legal to [email protected] or follow her on Twitter for updates @AislinnKeely.