The SEC Opens an Investigation Against Uniswap’s Developer: WSJ Report
3 Sep, 2021•2 min read•Regulation
The Securities and Exchange Commission has purportedly started an investigation against Uniswap Labs – the leading developer of the giant DEX Uniswap.
According to a WSJ report from earlier on September 3rd, the top US securities regulator has gone after the developers of the largest decentralized cryptocurrency exchange – Uniswap Labs. Citing people familiar with the matter, the coverage reads that the watchdog is in an early-stage investigation process. The SEC is trying to determine how customers are utilizing the exchange, how it is marketed, and how it operates in general. Uniswap Labs spokesman asserted that the organization 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.” It’s worth noting that the SEC’s actions come just shortly after the Commission partnered with AnChain.AI – a blockchain analytics firm – to enhance its monitoring of the DeFi space. Although the first version of the Uniswap protocol saw the light of day in 2018, the exchange picked up the pace significantly in 2020 and 2021. Back in April this year, the weekly trading volume surpassed $10 billion for the first time. While it may not be related, it’s also worth mentioning that Uniswap’s native token dropped by 5% in the past hour or so after the WSJ report went live.