Posted 10 months ago | by Catoshi Nakamoto
Uniswap Labs a protocol based in Brooklyn, New York, has now announced that its own front-end will be limiting access to some tokens due to increased regulatory scrutiny surrounding them, more directly synthetic-based assets.
Uniswap Labs will be restricting its users access to some tokens, including tokenized stocks and derivatives, the software development studio stated in a blog post.
Uniswap cited an “evolving regulatory landscape” explaining its decision. This news comes only mere days after U.S. regulators’ announced that these types of products were defined as securities.
“Consistent with actions taken by other DeFi interfaces, we have taken the decision to restrict access to certain tokens through app.uniswap.org,” the blog reads.
Binance in recent weeks has also canceled their own tokenized stock products. However, unlike Binance, a centralized exchange, Uniswap is only restricting access through its own front-end swapping mechanism. This means that users of the Uniswap protocol itself on other interfaces will still be able to access these types of tokens on alternative decentralized finance (Defi) platforms that still support access to tokenized stocks.
However, that number of platforms servicing tokenized stock tokens will likely dwindle down over time with regulatory pressure.
The overall crypto industry is facing regulatory focus with U.S. officials meeting earlier this week to discuss what to do with stablecoins, as Bitboy Crypto reported. The Securities and Exchange Commission (SEC) Chair Gary Gensler even said in a speech at a meeting with the American Bar Association that stock tokens on both centralized and decentralized exchanges are subject to securities laws. As such, Gensler stated that those types of tokens would have to be registered with the regulator to remain compliant. He added, that in the future the U.S. SEC may even take action against those that don’t comply.
“Make no mistake: It doesn’t matter whether it’s a stock token, a stable value token backed by securities, or any other virtual product that provides synthetic exposure to underlying securities,” Gensler said. “These platforms – whether in the decentralized or centralized finance space – are implicated by the securities laws and must work within our securities regime.”
Although, the focus is mostly on removing access to synthetic stock assets. In addition to stock tokens, Uniswap will also block access to some wrapped tokens and other cryptocurrencies mostly surrounding the ecosystems of Synthetix, Tether, Opyn, UMA, the announcement said. For a full list of banned tokens, you can see Uniswap’s Github here.
The full blog post is below.
“Uniswap Labs — a software development studio that contributes to the Uniswap Protocol — is proud to play a part in creating a better, more equitable financial system. One of Uniswap Labs’ contributions is the portal it provides at app.uniswap.org — an open source interface — for reliable, trustworthy interaction with the Uniswap Protocol.
To continue to innovate and provide this tool for the Uniswap community, we monitor the evolving regulatory landscape. Today, consistent with actions taken by other DeFi interfaces, we have taken the decision to restrict access to certain tokens through app.uniswap.org. These tokens have always represented a very small portion of overall volume on the Uniswap Protocol — a full list is available here.
Importantly, the Uniswap Protocol — unlike the interface — is a set of autonomous, decentralized, and immutable smart contracts. It provides unrestricted access to anyone with an Internet connection. Similarly, this action has no impact on the Uniswap Interface code, which remains open source, or the many other portals or locally run instances used to access the Uniswap Protocol.
Moving forward, we will continue to develop products and contribute to the Uniswap Protocol, in a way that is consistent with the broader DeFi industry’s values — to provide safe, transparent, and robust financial infrastructure that can empower users around the world.”
Bitcoin is currently trading at [FIAT: 34,204.22] UP +5.9% in the last 24 hours according to Coingecko at the time of this report.