Uniswap Labs in the crosshairs of regulators?
According to a Wall Street Journal publication, the United States Securities and Exchange Commission (SEC) has started investigating Uniswap Labs, the startup behind the development of the decentralized exchange Uniswap (UNI).
Citing sources familiar with the matter, the Wall Street Journal says supervisors are reportedly looking for information on how investors use Uniswap and how the platform is promoted.
“The startup is committed to complying with laws and regulations governing our industry and providing regulators with information that will help them with their investigation,” a spokesperson for Uniswap Labs reportedly said.
For the moment, nothing indicates that the activity of Uniswap Labs is indeed questioned by the regulator. However, this is a further sign of the intention of the US authorities to further monitor decentralized finance (DeFi).
As crypto-investor Alistair Milne recalls, regulators are unable to shut down platforms like Uniswap. However, the authorities could easily make transactions related to decentralized finance become illegal, and be considered transactions on the Dark Web.
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
Fortunately, we’re not there yet, but the SEC could easily put DeFi in the wheels and slow its development, at least in the United States.
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About the author: Clément Wardzala
Editor-in-chief of Cryptoast, I discovered Bitcoin and blockchain technology in 2017. Since then, I have endeavored to share qualitative content so that the sector is democratized among everyone.
All articles by Clément Wardzala.