SEC Seeking 'Smart Contract' Tracing Tool That Can Spot Security Vulnerabilities

The federal securities watchdog has taken an interest in DeFi's most basic building block.

AccessTimeIconAug 4, 2020 at 6:19 p.m. UTC
Updated Sep 14, 2021 at 9:40 a.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

The U.S. Securities and Exchange Commission (SEC) wants to procure a blockchain forensics tool that can analyze smart contracts and, preferably, highlight their security issues.

  • Issuing a "DLT Smart Contract Analysis Tool" solicitation request on July 30, the SEC signaled its newfound interest in actively monitoring the code-based blockchain contracts at the foundation of Decentralized Finance (DeFi).
  • SEC wants a tool that can identify: contract purpose, token type, purchase and sale restrictions, address whitelists and blacklists, modifications and contract calls, according to documents reviewed by CoinDesk.
  • Preferably, the tool will also "include the capability to analyze smart contracts for security issues and vulnerabilities," the SEC said in documents accompanying the request.
  • Comparative analysis between different smart contracts would also be a plus, SEC said. Private-sector software vendors have until Aug. 13 to pitch the watchdog.
  • Bloomberg Law first reported the SEC's interest in a smart contract tool.


Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to to register and buy your pass now.