Posted 9 months ago | by Catoshi Nakamoto
Popular decentralized exchange protocol Uniswap is under investigation by the U.S. Securities and Exchange Commission (SEC) according to a recent report.
Uniswap Marketing Being Investigated
The SEC is looking into the operators and marketing operations of the number one decentralized exchange, according to the Wall Street Journal, which cited “people familiar with the matter.”
The anonymously sourced report was written by Dave Michaels and Alexander Osipovich who claimed unnamed sources told the news outlet that SEC enforcement attorneys are probing Uniswap Labs the company behind Uniswap dex. According to the report, SEC enforcement officials want to know how Uniswap is marketed.
Uniswap Labs isn’t alone, sources from the report also added that the SEC enforcement is presently investigating crypto lending applications as well. The “people familiar with the matter” stated that the SEC is seeking to find out if the dex or lending applications “resisted oversight.”
A Uniswap Labs spokesperson told the WSJ that they are “committed to complying with the laws and regulations governing our industry and to providing information to regulators that will assist them with any inquiry.”
Last month, Uniswap Labs a protocol based in Brooklyn, New York, announced that its own front-end would be limiting access to some tokens due to increased regulatory scrutiny surrounding them, more directly synthetic-based assets. Uniswap Labs stated going forward it would be restricting its users’ access to some tokens, including tokenized stocks and derivatives, the software development studio stated as Bitboy Crypto previously reported.
It’s important to note for readers that this story is still developing and not much is known at this time. However, SEC Chair Gary Gensler’s own comments indicated that the enforcement agency would start going after DEFI protocols and decentralized finance applications in general.
As Bitboy Crypto reported, Gensler recently spoke about “decentralized finance” at the Aspen Security Forum, stating these platforms “not only can implicate the securities laws—some platforms also can implicate the commodities laws and the banking laws.”
“While each token’s legal status depends on its own facts and circumstances, the probability is quite remote that, with 50 or 100 tokens, any given platform has zero securities,” Gensler said.
Uniswap allows anyone to swap ERC-20 tokens without any middlemen or KYC, that last part may soon change with the government seeming to be bringing down the hammer on the popular DEX. This is just an initial investigation, so any such action against Uniswap would likely be years away at the pace at which the government moves.
Bitcoin is currently trading at [FIAT: $50,317.02] UP +0.4% in the last 24 hours according to Coingecko at the time of this report.