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US SEC investigates crypto exchange developer Uniswap Labs - WSJ

US SEC investigates crypto exchange developer Uniswap Labs - WSJ

Representations of cryptocurrencies Bitcoin, Ethereum, DogeCoin, Ripple, Litecoin are placed on PC motherboard in this illustration taken June 29, 2021. REUTERS/Dado Ruvic/Illustration/File Photo

The U.S. Securities and Exchange Commission (SEC) is investigating Uniswap Labs, the main developer behind one of the world's largest cryptocurrency exchanges, Uniswap, the Wall Street Journal reported on Friday https://www.wsj.com/articles/regulators-investigate-crypto-exchange-developer-uniswap-labs-11630666800?mod=latest_headlines, citing people familiar with the matter.

Enforcement attorneys are looking for more information on how investors use Uniswap and the manner in which it is marketed, the report said.

Uniswap did not immediately reply to a Reuters request for comment.

SEC's probe into Uniswap Labs comes amid heightened regulatory interest into cryptocurrencies and the digital asset market, with Chair Gary Gensler calling on Congress last month https://www.reuters.com/technology/us-sec-chair-gensler-calls-congress-help-rein-crypto-wild-west-2021-08-03 to give the agency more authority to better police crypto trading and lending.

Uniswap is a crypto marketplace for decentralized finance or DeFi developers, traders and liquidity providers. DeFi is an open network and works on a peer-to-peer system, where transactions are not routed through a centralized system such as a bank or a brokerage.

Gensler in August had called on lawmakers to give the SEC more power to oversee DeFi platforms, which are not regulated in the United States.

(Reporting by Sohini Podder in Bengaluru; Editing by Vinay Dwivedi)

Source: Reuters

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