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 trade Uniswap, in response to 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.
Based on 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 knowledge web site VC Sheet.
The report about SEC’s correspondence with Uniswap Labs’ backers comes about 4 months for the reason that US markets regulator sent a Wells Discover to the Ethereum-based decentralized trade. 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 trade violated US securities legal guidelines was “weak and fallacious.”
“…a token is merely a file format–like a PDF or JPEG. Tokens can symbolize any worth, and overwhelmingly symbolize 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 had been concerned, the Uniswap protocol (and internet app, and pockets) don’t fall underneath definitions of the ‘securities trade’ or ‘dealer.’
Underneath legislation, the Uniswap protocol must be particularly designed ‘for’ ‘securities’ – and it isn’t. It’s for normal functions, primarily used for commodities.”
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