According to reports, the SEC is investigating Uniswap

Attorneys for the Department of Justice are apparently seeking information about Uniswap’s marketing and investor services.

The Securities and Exchange Commission of the United States is apparently examining Uniswap, the world’s largest decentralized bitcoin exchange. The Wall Street Journal reported on Friday that the US securities regulator has opened an investigation into Uniswap’s primary developer, Uniswap Labs.

According to the story, enforcement attorneys are now investigating Uniswap’s marketing and investor relations efforts, citing anonymous persons acquainted with the topic. According to a spokeswoman for Uniswap Labs, the company 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.”

Uniswap is a decentralized exchange that enables users to exchange Ethereum-based coins and tokens without the intervention of a central body. According to CoinMarketCap data, the exchange is the largest decentralized exchange, with a $1.5 billion trade volume over the last 24 hours at the time of writing.

Unpopular take:

No, the SEC and others can't shut down Uniswap's or other DeFi smart contracts

But they can easily make it as difficult/illegal as transacting on the Dark Web for residents in their jurisdiction (at least)

As well as declare all governance tokens as securities

— Alistair Milne (@alistairmilne) September 3, 2021

To Cointelegraph’s knowledge, an SEC spokeswoman declined to comment on the presence or non-existence of a possible inquiry. Uniswap did not immediately react to a request for comment from Cointelegraph.

The disclosure comes as US regulators focus their attention on the decentralized finance (Defi) business, with SEC chairman Gary Gensler revealing last month the authority’s plans to expand its crypto-related legislation to include Defi, token offerings, and stablecoins. The regulator struck a $125,000 arrangement with blockchain analytics firm AnChain.AI in late August to receive technical support in monitoring and regulating the Defi market.

Prior to the SEC intensifying its investigation into the Defi, Uniswap removed dozens of tokens and tokenized stocks from its trading platform in late July, citing mounting regulatory pressure. “We closely follow the shifting regulatory landscape,” Uniswap stated, noting that other Defi companies have taken similar steps.

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