The US Securities and Exchange Commission is now conducting a thorough investigation on Uniswap.
In regards to a recent report posted by the Wall Street Journal, the world’s biggest decentralized cryptocurrency exchange, Uniswap, is currently under investigation by the United States SEC. Sources indicate that officials from the SEC want to know more about how investors are interacting with Uniswap and also the overall working of the decentralized cryptocurrency exchange.
Responding to the situation, a spokesman from Uniswap stated to the Wall Street Journal that Uniswap is completely ready to provide full transparency in regards to any information that the SEC requires and that it respects the law and regulations, which are used to govern the financial industry. However, things didn’t look so good for the UNI token, as it suffered a significant loss of 6% to its value. As the investigation has just started, it doesn’t seem that it will bring out any proper allegations or any sort of illegal doing.
Gary Gensler’s Activity
After attaining the position of Head of the SEC, Gary Gensler has been actively raising his voice over the minimal number of regulations in regards to decentralized finance. Gary Gensler mentioned that the trend of gamification in investments is a very concerning thing, mentioning applications such as Robinhood that have been contributing to the ‘meme stock’ incident that happened this year. As investigators are focused on the operations and marketing of Uniswap, Gensler will also be considering gamification as a part of the investigation plan.
Gensler commented on the state of DeFi, stating that a lot of so-called decentralized platforms do have some amount of centralization attached to them while also referring to governance tactics, fee structures and user attraction systems.
SEC has started to shift a lot of its focus towards the proper regulations of the cryptocurrency market. Uniswap itself has been working to ensure decentralization, as the company had to remove more than a hundred registered tokens, with the majority of them being either synthetic assets or token-based stocks, which are highly regarded as securities from the SEC. The exchange has had a positive growth trend so far, as the recorded trading volume in August was said to be around $53Billion in value with $5.2Billion locked assets for liquidity.