SEC Investigating Uniswap Labs: Report

The regulator is seeking information about how investors use the decentralized exchange and how it is marketed.

AccessTimeIconSep 7, 2021 at 3:24 p.m. UTC
Updated May 11, 2023 at 6:37 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

The U.S. Securities and Exchange Commission (SEC) is investigating the developer of decentralized exchange Uniswap, the Wall Street Journal reported Friday.

  • The SEC is seeking information about how investors use the exchange and how it is marketed, the report said, citing people familiar with the matter.
  • The exchange’s developer, Uniswap Labs, has said that it will assist the regulator with its civil inquiry. The SEC has declined to comment, according to the Wall Street Journal.
  • Uniswap is the Ethereum blockchain’s largest decentralized exchange by trading volume.
  • While it is still unclear exactly what the SEC wants to know, the news is a sign of the regulator’s intent to wield greater oversight of decentralized finance (DeFi), something SEC Chairman Gary Gensler hinted at in recent comments.
  • No wrongdoing appears to have been alleged at this time.
  • Gensler has argued that while there may be no central entity in charge of a decentralized exchange, DeFi projects that offer incentives or digital tokens to participants could fall under the purview of SEC regulation.
  • “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,” he said in an interview with the Wall Street Journal last month.
  • The SEC filed what it called its first case involving securities using DeFi technology last month, charging so-called DeFi lender Blockchain Credit Partners with raising $30 million through allegedly fraudulent offerings.

UPDATE (Sept. 3, 14:45 UTC): Adds Gensler comments on decentralized finance, case against Blockchain Credit Partners; additional details.

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

Jamie Crawley

Jamie Crawley is a CoinDesk news reporter based in London.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.


Read more about