Boring.

BTW:They should take a look at winK.

Well, it´s getting closer to stock trading system, where you also have your clearing houses that need to confirm a trade. Beside that, governments today have a tendendy, or call it a paranoia if you will, to controll everryting, so this is no big news. A big impact would be a commonly accepted approach for the regulation of cryptos across all 50 states.

This is nothing out of the ordinary, crypto is easily trackable and there are plenty of companies out there providing tools for that. Even mixers can be decoded and funds traced. This is the thing that many dont understand, they have this fantasy that crypto is anonymous and not traceable but in reality most of the time it is much easier to track crypto than bank transfers.

They can just force any exchange and wallets that wants to operate in United States to give a complete log of user data and their crypto balances, transactions and behaviors. Most of the user at some time do use a centralized wallet and exchange. Once, they get the transaction, they can keep on tracking till they find another wallet on their database tracking whole of the chain. The supercomputers do need some job.

ETH, EOS,TRON  

I was very sorry, but a year ago I said goodbye to the last American crypto exchange.
First, all American exchanges will be forced to leak all personal data of customers, and then other major global exchanges.
This will increase the burden on banks, increase the number of Bank account blocking and tax penalties, and have the opposite economic effect - the shadow sector will grow.

If they can build up an effective and productive tool to automatically track crypto (bitcoin first) transactions to owners, IPs, etc. they will do this for all bitcoin transactions. Bitcoin block data is available for all of us and it only requires advanced skills from tech gurus to dig deeper to find more things that can be supported by their own bitcoin full nodes.

You can get data at Blockchair.com's database dump

From bitcoin, people can mix it or convert it to other altcoins, then mix again, and any kind of things they think will protect their privacy. But it is what people thought, try to mix with some cryptocurrencies won't protect their privacy if they don't do it right.

[Guide] Decent mixing methods

The problem is the way they try to take these advanced skills and use them against our own privacy. Like, it's taking a very smooth focus turn from criminals to literally everyone else.

I usually throw away all unnecessary physical information about my wallets such as paper wallets the same way I throw away unnecessary bills when paying with fiat anywhere - which basically means that, while there's a permanent record on the Blockchain of all my txs, there's no way even I can link txs from months/years ago to the real events during which I have broadcasted them.

Through this crypto tracking tool, they'd probably get to a point where addresses their tool won't have any clue about will be flagged as a "suspicious" - as in, sources of funds are unknown. What is quite creepy is that, by the effort of "improving compliance", they're doing exactly the opposite of what mixers do - does this mean crypto privacy will become an enemy of the state? The blockchain is publicly available, but in order to analyze or track cryptocurrency addresses, you have to spend quite a lot of resources the average Joe doesn't have.

SEC is indeed after these defi projects, with the use of crypto tracking tool, suspicious transactions are hoped to be traced.
Although, block chain records are publicly accessible, I still think that in order to track everything violation of privacy may happen.
And I believe that this proposition would cost intensive effort and determination.

This doesn't surprise me. And I don't think we should react harshly to that. After all, the transactions are publicly available for anyone out there wanting to have a look, so I don't think it can be reasonably argued that the authorities should not use that to look into things they're interested it. Moreover, tracking is likely to be used for the cases of known scams. It's often known that the scammers who hacked an exchange or something like that have transferred money to a certain address. So I support authorities trying to find a solution that would allow to track where such money goes and seek a moment of mistake that gives information about the identity of these scammers. It would be worse if SEC argued for 100% of users going through KYC so that in case someone commits a crime it would be easy to know who it was.

If a tracker like this has come. Frauds and other crypto criminals will be eliminated and the crypto currency will surely be having a peaceful life. When crypto world is already in peace, mass adoption will easily occur and it is sooner than what we've expected. I hope that may happen because we all know that crypto currency mass adoption can help the whole world's financial system better and if something like that happens, there will be no rich and poor country.