September 3, 2021

(Reuters) – The U.S. Securities and Trade Commission (SEC) is investigating Uniswap Labs, the primary developer powering a single of the world’s major cryptocurrency exchanges, Uniswap, the Wall Road Journal described on Friday https://www.wsj.com/content articles/regulators-examine-crypto-trade-developer-uniswap-labs-11630666800?mod=hottest_headlines, citing people today common with the matter.

Enforcement attorneys are looking for additional info on how buyers use Uniswap and the method in which it is promoted, the report mentioned.

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

SEC’s probe into Uniswap Labs will come amid heightened regulatory desire into cryptocurrencies and the digital asset marketplace, with Chair Gary Gensler calling on Congress past month https://www.reuters.com/technological innovation/us-sec-chair-gensler-phone calls-congress-enable-rein-crypto-wild-west-2021-08-03 to give the company more authority to greater police crypto trading and lending.

Uniswap is a crypto market for decentralized finance or DeFi builders, traders and liquidity suppliers. DeFi is an open up network and will work on a peer-to-peer technique, the place transactions are not routed through a centralized procedure these kinds of as a lender or a brokerage.

Gensler in August experienced called on lawmakers to give the SEC additional energy to oversee DeFi platforms, which are not controlled in the United States.

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