Uniswap Labs, the leading developer of the giant DEX Uniswap become the latest target of the SEC
According to the Wall Street Journal, the U.S. Securities and Exchange (SEC) is investigating automated market maker Uniswap.
SEC is reportedly investigating automated market maker Uniswap
It is known that citing people familiar with the matter, the SEC is in the process of an early investigation. And the enforcement attorneys are now looking for information about Uniswap’s marketing and investor services, citing anonymous sources familiar with the matter.
Uniswap Labs spokesman asserted that the organization is committed to complying with the laws and regulations governing our industry and providing information to regulators that will assist them with any inquiry.
This new action by the SEC comes shortly after the Commission partnered with a blockchain analytics firm AnChain.AI to strengthen oversight of the DeFi space. Although the first version of the Uniswap protocol appeared in 2018, the exchange accelerated significantly in 2020 and 2021. Back in April this year, the weekly trading volume surpassed $10 billion for the first time.
Last month, SEC chairman Gary Gensler voiced its concerns about the explosion of the DeFi industry. He then ramped up his criticism of DeFi projects, recently claiming that they are not sufficiently decentralized.
“There’s still a core group of folks that are not only writing the software, like the open-source software, but they often have governance and fees,” Gensler stated.
A spokesperson for Uniswap told the WSJ that the company is committed to regulatory compliance. At the moment, UNI price, the project’s governance token, which is largely unaffected by the news, is currently trading down around 3% over the past 24 hours.
UNI/USD 4-hour chart | Source: TradingView
The SEC is yet to confirm the report since it cannot speak about non-public investigations. And as you know, the SEC is currently embroiled in a lawsuit against blockchain company Ripple and several other crypto companies.
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