The U.S. Securities and Trade Fee (SEC) has despatched letters to a number of enterprise capital (VC) corporations over their hyperlinks to the operator of the Ethereum (ETH)-based decentralized alternate Uniswap, in keeping with a report by on-line publication Axios.
Citing a number of sources, Axios says that the SEC has despatched letters to Andreessen Horowitz, Union Sq. Ventures and different VC corporations over their hyperlinks to Uniswap Labs.
In response to the web publication, VC corporations have poured greater than $170 million into Uniswap Labs since inception. The crypto-focused subsidiary of Andreessen Horowitz, a16z Crypto, lists Uniswap on its portfolio of investments. Uniswap can be listed as one in every of Union Sq. Ventures’ unicorn investments by enterprise capital information web site VC Sheet.
The report about SEC’s correspondence with Uniswap Labs’ backers comes about 4 months because the US markets regulator despatched a Wells Discover to the Ethereum-based decentralized alternate. A Wells Discover is often issued when the SEC is probing an entity for potential violation of securities legal guidelines.
In response to the SEC’s Wells Discover, Uniswap Labs’ chief authorized officer Marvin Ammori argued that the markets regulator’s argument that the decentralized alternate violated US securities legal guidelines was “weak and flawed.”
“…a token is merely a file format–like a PDF or JPEG. Tokens can signify any worth, and overwhelmingly signify commodities (BTC, ETH, stables) & memes & entry for helpful networks. PDFs are usually not inherently inventory certificates, and tokens are usually not inherently securities.
Even when securities have been concerned, the Uniswap protocol (and net app, and pockets) don’t fall below definitions of the ‘securities alternate’ or ‘dealer.’
Below regulation, the Uniswap protocol must be particularly designed ‘for’ ‘securities’ – and it’s not. It’s for basic functions, primarily used for commodities.”
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