The US Securities and Exchange Commission (SEC) has taken a big step towards regulating the Defi market, just days after SEC Chairman Gary Gensler told that the decentralized finance market is something they are looking into.

The SEC has announced a contract with blockchain analytics firm AnChain.AI, with the aim of assisting the regulator in regulating the Defi market.

The company revealed that the SEC has signed a 5-year contract worth $125,000 per year for a total of $625,000.

Gensler remarked during a recent interview:

There’s still a core group of people who don’t just write software, like open source software, but often have governance and fees…There’s some incentive structure for these promoters and sponsors in the middle of that.

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while stated Victor Fang, CEO and co-founder of AnChain:

The SEC is keen to understand what is happening in the world of digital assets based on smart contracts…so we provide them with the technology to analyze and track smart contracts.

It is not yet known what oversight the SEC will exercise over decentralized finance projects, most of which come in a decentralized form and often anonymously.

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