SEC Pushes for Faster Retail Investor Access to Fund Data with Blockchain Solutions

The U.S. Securities and Exchange Commission (SEC) has advocated for more timely retail investor access to fund portfolio data, highlighting that current delays could disadvantage the 70 million American households that rely on this information.

Commissioner Jaime E. Lizarraga pointed out that during times of market stress, such as the Kovid pandemic, delayed data can impair investor decision-making. The SEC is focused on improving the regulatory framework to provide faster access to this critical financial information.

A potential solution to this problem lies in blockchain oracles, such as those provided by Chainlink. These oracles serve as intermediaries that connect the blockchain to external data sources, allowing smart contracts to be executed based on real-world input. Using decentralized oracle networks (DONs), blockchain systems can securely retrieve, verify, and transmit external data, ensuring that it remains tamper-proof. This technology has already been successfully deployed in decentralized financial applications (DeFi) where real-time data feeds are critical.

Chainlink’s partnerships with financial institutions such as Fidelity International and Sygnum have demonstrated the ability to input net asset value (NAV) data into the chain, offering real-time transparency and accessibility to fund portfolio data.

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Integrating blockchain oracles into the financial ecosystem could directly address the SEC’s concerns by providing retail investors with timely and standardized access to portfolio data, thereby enhancing investor protection and enabling the SEC to more effectively monitor market trends and risks in real time.

Alexander Stefanov