Uniswap token falls on SEC examination report
Uniswap token falls on SEC examination report
The token reacted negatively to the news.
The central theses
- Uniswap will face an investigation by the US stock exchange supervisory authority (Securities and Exchange Commission).
- The university token fell in the news by over 6% and could continue.
- The second chairman Gary Gensler has repeatedly commented on the lack of regulation at Defi.
reported that the US stock exchange supervision SEC (Securities and Exchange Commission) is investigating Uniswap Labs, the developer behind the largest decentralized stock exchange uniswap.
Uniswap examined
Defi giant Uniswap According to a report published on Friday morning by Wall Street Journal, Labs will be exposed to an investigation by the US stock exchange supervisory authority. Anonymous Sources announced that SEC lawyers are looking for information about the use of investors uniswap and how the stock exchange is marketed.
In response, a representative of Uniswap Labs told Wall Street Journal:
"[Uniswap IS] obliges to comply with the laws and regulations applicable to our industry and to provide the supervisory authorities information that supports them in all inquiries."
The governance token of the stock exchange, university, has reacted negatively to the news and has so far fallen by over 6%. However, he examines Uniswap Labs seems to be in an early stage and cannot raise any formal allegations for misconduct. The SEC chairman Gary Gensler has often expressed concerns about the lack of regulation in decentralized finance since his appointment as head of the organization in April. previously Gensler commented on the worrying trend of "gamification" in investments and named apps such as Robinhood (Nasdaq :) as a drive for the "meme shares" at the beginning of this year. Since the investigators are supposedly interested in how uniswap is marketed, Gensler may also start the topic from a gamification perspective. At the beginning of this week Gensler confirmed his attitude towards defi protocols and claimed that many allegedly decentralized platforms have "an appropriate level of centralization", and referred to governance mechanisms, fee models and incentive systems. The SEC is increasingly participating in the regulation of the crypto room. According to the developments in the ongoing procedure of the regulatory authority against SEC, the SEC also sued the founder Satish Kumbhani in a new legal claim this week. Uniswap Labs was not idle in view of the growing regulatory pressure. In July the stock exchange removed over 100 tokens, which raised questions about the decentralization of the platform. Many of the decorated tokens were synthetic assets or tokenized stocks, instruments with a high risk of being classified as securities by the SEC. Uniswap has grown exponentially since V1 was published in November 2018. In August, the protocol enabled a trading volume of over $ 53 billion, with users blocking assets worth $ 5.2 billion to provide liquidity.