Decentralized cryptocurrency exchange Uniswap said it received a notice from the U.S. Securities and Exchange Commission (SEC) on Wednesday that it may pursue enforcement action against it, the company said in a blogpost.
Uniswap is a leading decentralized cryptocurrency marketplace. The New York-based company operates a peer-to-peer platform for users who want to make transactions entirely on blockchains.
The company did not say why it was being issued a Wells notice, which is often sent by regulators to notify respondents of certain charges. The move, however, could be tied to the agency’s efforts to clamp down on companies that use digital assets, such as Coinbase, the second largest crypto exchange.
The feud between the SEC and Coinbase is a prime example. In late March, the a judge ruled in favor of the agency in a lawsuit it brought against Coinbase in which the SEC claimed the crypto exchange engaged in the sale of unregistered securities.
“Taking into account the SEC’s ongoing lawsuits against Coinbase and others as well as their complete unwillingness to provide clarity or a path to registration to those operating lawfully within the U.S., we can only conclude that this is the latest political effort to target even the best actors building technology on blockchains,” Uniswap said in its blogpost.
In the meantime, the company said that its entire suite of current products will continue to be available. Moreover, it will continue to ship new products.
More business news
Bitcoin’s big ‘halving’ event is approaching. Here’s what that means, when it is, and why it matters
Gen Z and millennials are as likely to own crypto as they are to own real estate
Crypto exchange Binance is looking for a home because it has reached ‘regulatory maturity’
