According to a Wall Street Journal report, the United States Securities and Exchange Commission has opened an investigation into the Uniswap Labs, the startup operating the world’s largest decentralized crypto exchange, Uniswap.
A Uniswap Labs spokesperson has suggested that the firm will give the SEC all of the support that it needs. The person said:
“[We are] 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 report notes that an SEC spokeswoman did not agree to comment on the matter, stating that the commission does not confirm or deny investigations. The Wall Street Journal further added that the SEC’s enforcement attorneys are currently going through Uniswap’s operations to find out how investors use the platform and how marketing is done.
The decentralized exchange sector is the main focal point for the decentralized finance (DeFi) industry. The decentralized nature of the projects attracts members of the crypto community seeking a lot less centralization. However, the government is still coming down hard on these projects.
According to SEC Chairman Gary Gensler, the decentralization doesn’t remove them from regulatory scrutiny. Gensler suggests that there are DeFi projects with features such as incentives, governance, and fees, that may put them under the SEC’s purview.
Image Credits: Pixabay
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