The Securities and Exchange Commission (SEC) is intensifying its scrutiny of the cryptocurrency industry, with recent inquiries directed at prominent venture capital firms involved in the decentralized exchange Uniswap.
According to Axios, multiple sources have confirmed that Andreessen Horowitz (a16z) and Union Square Ventures, among others, have received letters from the SEC seeking information about their investments in Uniswap Labs, the company behind the popular decentralized exchange platform.
Uniswap Labs has secured over $170 million in venture capital funding, most recently in late 2022 at a valuation of nearly $1.7 billion. Earlier this year, the company received and responded to a Wells Notice, a precursor to potential legal action.
The SEC’s interest in Uniswap suggests the agency may classify the platform as an unregistered exchange. This is particularly noteworthy given that Uniswap operates on a decentralized model, differentiating it from centralized exchanges like Coinbase, which has been a frequent target of the SEC.
Despite the SEC’s focus on Uniswap Labs, it’s important to note that the underlying Uniswap protocol is decentralized and would continue to function even if the company were to cease operations.
