Several prominent venture capital firms, including Andreessen Horowitz and Union Square Ventures, have contacted the U.S. Securities and Exchange Commission (SEC) regarding their investments in Uniswap Labs, the operator behind the decentralized cryptocurrency exchange Uniswap. According to multiple sources, the SEC's inquiries come as part of a broader investigation into whether Uniswap operates as an unregistered exchange.
Uniswap Labs, which has raised over $170 million in venture capital, was last valued at nearly $1.7 billion following its most recent funding round in late 2022. Earlier this year, the company received a Wells Notice from the SEC, signalling that regulators might be preparing to formally accuse Uniswap of operating without proper registration.
Unlike traditional, vertically integrated crypto exchanges like Coinbase, Uniswap operates decentralized, meaning that even if Uniswap Labs were shut down, the Uniswap platform itself could continue to function independently. This decentralization could complicate regulatory efforts, as the core technology behind Uniswap would likely remain operational despite actions taken against its corporate backers.
The SEC's interest in the venture capitalists backing Uniswap Labs suggests that the agency is examining the broader ecosystem supporting decentralized finance (DeFi) platforms. This scrutiny may signal an increased regulatory focus on the role of investors in enabling and sustaining these platforms.
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