The United States Securities and Exchange Commission (SEC) is reportedly on the heels of Uniswap Labs, the company behind the popular Ethereum-based decentralized exchange Uniswap.
The Wall Street Journal reported the development Friday, citing sources familiar with the matter. The report claims that enforcement attorneys are specifically seeking information regarding how investors use the token and how the project is marketed to the public.
The latest development comes a few weeks after SEC Chair Gary Gensel confirmed that decentralized finance (DeFi) projects are top of the regulator’s watchlist.
It is worth recalling that in July, Uniswap restricted the trading of synthetic assets on its front-end. Synthetic assets are tokens that track the price movement of traditional assets such as stocks and ETFs, which are labeled securities under U.S. laws. The decision to disable the trading of such assets on the Uniswap front-end is likely to be a result of the reported probe by the SEC.
A spokesperson for Uniswap Labs reportedly told the Wall Street Journal in the wake of the latest probe, that the project is “committed to complying with the laws and regulations governing our industry and to providing information to regulators that will assist them with any inquiry.”
The Uniswap governance token, UNI, is trading at $29.7 at the time of writing, relatively unscathed by news of the SEC probe.