sec uniswap uniswap julystreetjournal

However, the investigation of Uniswap Labs appears to be in its early stages and may not produce any formal allegations of wrongdoing.

SEC chair Gary Gensler has frequently voiced concerns over the lack of regulation in decentralized finance since he was appointed head of the organization in April.

Previously, Gensler commented on the worrying trend of “gamification” in investing, citing apps like Robinhood as fueling the “meme stock” phenomenon earlier this year. As investigators are reportedly interested in how Uniswap is marketed, Gensler may also be approaching the issue from a gamification perspective.


With this news, it appears those fears were founded.

With that being said, BlockFi has currently managed to evade any wrongdoing, as the New Jersey Bureau of Securities has extended its deadline. This gives hope to users as it could mean it eventually gets dropped before entering further proceedings.

It is unclear why exactly this extension was requested, but if it has anything to do with the fact BlockFi has many decentralized elements meaning it operates outside the jurisdiction of the state, then it is possible something similar could happen with Uniswap. With so little information about Uniswap’s investigation, it is hard to make any comparisons, but it is fair to say if this goes further, then it will be the SEC’s first thorough examination into how DeFi operates.

Timeline of UniswapUniswap Price Analysis: UNI slowly retraces to $28.5, a higher low set? – Cryptopolitan

Uniswap price analysis is bullish for today. UNI/USD saw a retracement from $31 resistance on Friday.


SEC Launches Investigation Against Uniswap’s Developer: Report – DCForecasts

SEC launches investigation against Uniswap’s developer – Uniswap Labs as we are reading more about it in our latest cryptocurrency news today. The biggest decentralized exchange Uniswap came under fire from the SEC as the US SEC launched an investigation against the leading developer – Uniswap Labs.

UNI Price Slides Due To SEC Investigation, In Risk Of Deep Plunge? – NewsBTC

The decentralized nature of Uniswap (UNI) will be put to the test.

Wall Street Journal bildirdi SEC (Securities and Exchange Commission) Uniswap Labs soruşturma açtığını 3 Eylül. Uniswap, herhangi bir değerlendirmede işbirliği yapma isteğini daha önceden vurgulamıştı. Ayrıca şirket, kripto değişim gereksinimlerini tutarlı bir şekilde karşılama taahhüdünü beyan etti.

Uniswap’a Yönelik Sorular

Wall Street Journal’a göre, dünyadaki en güçlü menkul kıymetler düzenleyicisi öncelikle iki şeyle ilgilenir:

*Yatırımcılar Uniswap’ı nasıl kullanıyor?

*Şirket kendini nasıl pazarlıyor?

Soruşturma, bu noktada her iki soruyla ilgili hala erken aşamalarındadır.
Buna göre, borsa düzenleyicisinin nihayetinde herhangi bir iddiada bulunmaması bile olabilir.

Uniswap, according to a bombshell report by The Wall Street Journal that cites anonymous sources privy to the matter.

The agency’s enforcement attorneys have inquired about the exchange’s marketing and the way users interact with the platform.

The report confirms that the securities watchdog is readying to put the clamps on the booming decentralized finance industry.

SEC boss Gary Gensler voiced his concerns about the rapidly growing crypto sector in early August. He then ramped up his criticism of DeFi protocols, recently claiming that they are not sufficiently decentralized:

There’s still a core group of folks that are not only writing the software, like the open-source software, but they often have governance and fees.

Gensler appears to take issue with those projects that incentivize their users by offering them valuable tokens.

A spokesperson for Uniswap told the WSJ that the company is committed to regulatory compliance.

The price of UNI, the project’s governance token, has been largely unaffected by the news, currently trading down about 1.5%.

The SEC has not confirmed the report since it cannot speak about non-public investigations. It is yet to be seen whether any formal charges will come out of the Uniswap probe, which appears to be in its early stage.

The much-feared agency is currently embroiled in ongoing lawsuits against blockchain company Ripple as well as several other crypto actors.

The rise of Uniswap

Decentralized exchange Uniswap emerged seemingly from nowhere as the leading decentralized exchange during the “DeFi summer” of 2020.

The SEC has reportedly opened an investigation into Uniswap Labs, pioneer of DeFi technology, and creator of one of the largest DEXs in the landscape. This comes after SEC Chair Gary Gensler’s remarks about regulating the DeFi space.

Putting Uniswap Under the Microscope

The SEC’s investigation is supposedly beginning as more of a fact-finding mission, with staff studying how exactly people use the Uniswap platform, how they profit from it, and how the project is marketed by its developers. A team member from the exchange commented, saying they 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”.

Details are sparse at the moment.

Uniswap is a decentralized exchange protocol that allows users to switch between decentralized Ethereum-based coins and tokens, rated as the largest decentralized exchange. With $1.5 billion in trading volume over the past 24 hours, according to data from CoinMarketCap.

An SEC spokesman declined to comment on the existence or non-existence of a possible investigation into the SEC. Cointelegraph Uniswap did not respond to a request for comment.
Cointelegraph in an instant

Meanwhile, the news came amid US regulators. SEC Chairman Gary Gensler announced last month the authority’s plans for crypto-related rules targeting DeFi.

At that time guest speaker, Angela Walch, Professor at St. Mary’s University School of Law, urged the government to “look for where power exists… and think about how to address it”. Gensler could be attempting to do this by looking at the behavior of developers.

Will DeFi Leave the US?

The US is a hub for DeFi technology.

The lead dev team at Uniswap is in New York, and the team for MakerDAO is located in San Francisco. These are two of the biggest and most well-known DeFi projects in the industry, but with news of the SEC’s involvement, it could easily drive them away.

If crypto developers fear the SEC is stunting innovation, experimentation, and growth, they will be discouraged from building projects. It is not so much that developers are worried about investigations, but more so they could become distrusting of Gensler’s beliefs.

So far all we know about the investigation is the SEC is scrutinizing how the project’s automated market maker works, and examining areas of Uniswap that may have been overlooked.

This marks a historic moment in the crypto industry, as this is the first time a DeFi project has been investigated by the SEC. Hybrid DeFi projects, such as BlockFi, have been investigated by regulators before, but this is the first time a fully decentralized platform has been scrutinized. In the case of BlockFi, it was actually individual state regulators that launched their inquiries, rather than the SEC.

At the time of BlockFi’s troubles, crypto enthusiasts worried this would set a dangerous precedent for how DeFi is viewed from a legal perspective.

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