Crypto exchange developer Uniswap Labs reportedly investigated by SEC
The United States Securities and Exchange Commission has initiated a probe into Uniswap’s developer team, Uniswap Labs, the largest decentralized cryptocurrency exchange.
As per the reports, securities regulators are now looking into Uniswap’s marketing and investor services. The SEC spokeswoman did not comment on the investigations, but the commission didn’t confirm or deny them.
Uniswap Labs said in the statement that it is “committed to complying with the laws and regulations governing our industry and to providing information to regulators that will assist them with any inquiry.”
Uniswap is a decentralized exchange for DeFi developers, traders, and liquidity providers. Uniswap is also the name of the company that initially developed the Uniswap protocol for trading and automated transactions between crypto tokens on the Ethereum blockchain using smart contracts.
Decentralized finance or DeFi works on a peer-to-peer system. In this open network, transactions are not routed through a centralized system like traditional banks.
In early August, SEC chairman Mr. Gensler doubled down on decentralized finance (DeFi) projects by warning exchanges that deal with digital assets against trading such products. He also called on lawmakers to give the SEC more powers to assert regulations on "decentralized" DeFi projects that reward users with tokens or similar incentives.
In an Aspen Security Forum, Mr. Gensler said, “It doesn’t matter whether it’s a stock token, a stable-value token backed by securities or any other virtual product that provides a synthetic exposure to underlying securities.”
He adds, “These products are subject to the securities laws and must work within our securities regime.”
CBW - External Analyst