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Uniswap is under investigation by the US Securities and Exchange Commission (SEC), according to a report by Reuters.
Uniswap is a DeFi leader and is said to be the largest decentralized digital asset exchange in operation. The Uniswap protocol facilitates crypto trading by utilizing smart contracts on the Ethereum blockchain in a peer-to-peer manner. This stands in contrast to the traditional intermediary structure for securities.
Uniswap claims over $386 billion in trade volume, 1.5 million users, and more than 60 million trades. The most recent 24-hour volume stood at $343 million. Uniswap has also issued a native UNI token.
In some ways, Uniswap is emblematic of the concept of DeFi that seeks to eliminate the middle-man, and affiliated costs, in financial transactions.
The report arrives at a time when regulatory scrutiny of crypto exchanges, and digital assets in general, is rising. Current SEC Chairman Gary Gensler has targeted crypto exchanges, regardless of jurisdiction, as a point of enforcement interest. Gensler is of the opinion that crypto exchanges represent a heightened point of risk when it comes to individual investors.
Uniswap has not yet commented on the report.
Gensler recently forwarded a letter to Senator Elizabeth Warren, a member of the Senate Banking Committee, requesting additional authority to regulate the fast-growing digital asset ecosystem that has lacked bright-line rules, challenging federal authorities. At least one elected official has criticized Gensler’s approach to increasing the SECs oversight remit.
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