SEC is investigating decentralized crypto exchange developer Uniswap Labs: Report

SEC is investigating decentralized crypto exchange developer Uniswap Labs: Report

The U.S. Securities and Exchange Commission (SEC) is reportedly investigating Uniswap Labs, the startup behind the largest decentralized cryptocurrency exchange.

The Wall Street Journal reported the news on Friday, citing "people familiar with the matter." Enforcement attorneys are said to be seeking information about how investors use Uniswap and how it is marketed.

Last month, SEC chairman Gary Gensler said that the agency could 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 say they are, said Gensler at the time.

A Uniswap Labs spokesperson told The Journal that the firm is 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.” An SEC spokesperson declined to comment to the news outlet, saying the agency doesn’t confirm or deny investigations.

The investigation appears to be in its early stages and may not produce any formal allegations of wrongdoing, per the report.

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