According to a recent report, the U.S. Securities and Exchange Commission (SEC) has allegedly started probing the startup that operates the decentralized exchange (dex) Uniswap. The dex platform Uniswap is the largest dex in terms of trade volume with over billion in crypto tokens swapped in the last seven days. Sources from the report also said SEC enforcement is investigating crypto lending applications as well.
Unnamed Sources Familiar With Matter Say SEC Is Investigating Defi Exchange Uniswap
A recently published report from the Wall Street Journal’s (WSJ) Dave Michaels and Alexander Osipovich claims unnamed sources told the outlet that SEC enforcement attorneys are probing the dex Uniswap Labs. The report shows that the SEC has not commented on the matter but a Uniswap Labs spokesperson said:
[Uniswap 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.
The unknown informants told the WSJ that the SEC enforcement officials want to know how Uniswap is marketed, and it wants information on crypto lending applications. The “people familiar with the matter” said that the SEC wants to find out if the dex or lending applications “resisted oversight.” The investigation seems to be a developing story and the WSJ says no allegations have stemmed from the informant’s information.
Uniswap Commands More Than 60% of Ethereum-Based Dex Trade Volume, Uniswap Labs Recently Removed 100 Tokens
Uniswap is the largest dex by trade volume today and as more than a dozen dex platforms including Uniswap captured $16 billion this week in volume, Uniswap commanded $10.3 billion of that volume. Uniswap commands 65.1% of all the dex trade volume (Ethereum dex platform volumes only) on Friday morning (EST), according to Dune Analytics stats.
News of the alleged probe into Uniswap Labs follows the flak the company got for removing 100 tokens from the main user interface at the end of July. It was assumed at the time that some of the 100 tokens listed could be deemed unregistered securities by U.S. regulators. “These tokens have always represented a very small portion of overall volume on the Uniswap Protocol,” Uniswap Labs wrote at the time.
The story concerning the SEC allegedly investigating the world’s largest dex application is still developing and we promise to keep our readers informed of any updated information pertaining to this topic.
What do you think about the report that says the SEC may be probing the world’s largest dex platform, Uniswap? Let us know what you think about this subject in the comments section below.