The Wall Street Journal reported today, with unnamed sources, that the U.S. Securities and Exchange Commission is investigating the largest decentralized exchange
(SEC) is investigating Uniswap Labs, the startup
behind the largest decentralized cryptocurrency exchange.
So reported The Wall Street Journal, WSJ, today, citing “people familiar with the matter.” It says law enforcers are seeking information about how investors use Uniswap
and how it is traded.
It’s worth remembering that last month, SEC Chairman Gary Gensler said the agency may regulate decentralized finance (DeFi) projects. Specifically, DeFi
projects that reward participants with valuable tokens or similar incentives could be regulated, no matter how “decentralized” they claim to be, Gensler said at the time. Also at the time, he said:
In my opinion, the legislative priority should focus on cryptocurrency trading, lending and DeFi platforms. Regulators would benefit from additional plenary authority to write rules and set security measures for cryptocurrency trading and lending.
A spokesperson for Uniswap Labs told The Journalthat the firm is “committed to complying with the laws and regulations that govern our industry and providing information to regulators that will assist them with any inquiries.” For its part, an SEC
spokesman declined to comment to the news outlet, saying the agency neither confirms nor denies the investigations, so official confirmation is lacking.
According to WSJ,
the investigation appears to be in its early stages and may not lead to formal allegations of wrongdoing. However, the report has become a news item reproduced by various U.S. media outlets.
Although the first version of the Uniswap protocol saw the light of day in 2018, the exchange accelerated significantly in 2020 and 2021. In April this year, the weekly trading volume exceeded USD $10 billion for the first time, Cryptopotatoaccounts.
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