News04 September 2021

King of Decentralized Finance, Uniswap, Under the SEC Radar

Uniswap Under the SEC Radar

Summary

  • The U.S. SEC is investigating Uniswap Labs
  • Uniswap Developers under investigation.
  • SEC is investigating Uniswap’s marketing and investor services

The United States securities and exchange (SEC) have launched a formal investigation targeting the largest DeFi platform, Uniswap. SEC is investigating investor and marketing services on the platform. This news comes barely a month after the SEC announced that it has jurisdictions over decentralized finance platforms.

According to anonymous sources, the SEC has been asking about how investors use the DEX. A spokesperson from Uniswap confirmed the investigations rumors and added that the platform is committed to complying with SEC by providing any information the regulators need for the inquiry.

Uniswap is the leading DeFi exchange under the Ethereum blockchain, where users swap Ethereum-based tokens. What makes Uniswap different is that it does not have a central authority. Over time, Uniswap has grown to become the leading DEX with a TVL of $2.9 billion.

While Uniswap is decentralized may make it beyond the scope of the SEC, pressure has been mounting on DeFi platforms on regulation. In July, Uniswap delisted more than 100 tokens from its front-end web application portal. The platform hinted at regulatory pressure as the reason for the delisting.

Kibet Elikana
Write a comment