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SEC Launches Investigation Into Uniswap Labs

The US SEC has launched an investigation into the developer of decentralized exchange Uniswap, according to the Wall Street Journal.

More exactly, the SEC wants to know how investors are using the exchange and how it is marketed. Uniswap Labs, the developer of the exchange confirmed that it would offer help to the regulator with the civil inquiry. The SEC hasn’t offered any official comment yet.

Uniswap represents the largest decentralized exchange by trading volume built on the Ethereum blockchain.

What the SEC wants to discover is not completely clear for now, but it does show that the regulator may plan to wield a higher degree of supervision over DeFi, which is something that Gary Gensler, the Chairman of SEC, suggested may happen soon.

No wrongdoings on Uniswap’s part were mentioned.

Gensler mentioned that even if there isn’t a central entity in charge of decentralized exchanges, DeFi projects that proffer incentives or digital tokens to those who get involved in the network may fall under SEC regulation.

He declared:

“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.”

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