Coming in as another positive news for the crypto world, the US SEC has dropped its probe on Uniswap. According to the platform’s blog post, the U.S. Securities and Exchange Commission (SEC) has contemplated ending its investigation into the decentralized exchange UniSwap.
The head of Coinbase, Brian Armstrong, said in an X post that he was optimistic about the possible development and that the probe’s conclusion might be a major turning point for the whole cryptocurrency sector.
SEC’s Probe into Uniswap
The SEC started looking into UniSwap because of worries about how the platform helped people trade unregistered securities.
The regulator alleged that Uniswap functions in a regulatorily ambiguous space by enabling users to exchange a variety of digital assets without a centralized authority.
Additionally, the SEC was interested in determining whether certain of the tokens that were exchanged on UniSwap would be considered securities under US law, which would entail particular regulatory obligations.
Concerns regarding the absence of KYC (Know Your Customer) and AML (Anti-Money Laundering) protocols on decentralized exchanges, which could allow for fraud, market manipulation, and illegal activity, prompted the study.
The SEC’s choice to abandon the litigation, however, indicates a change in the direction of more permissive regulations for DeFi platforms. The DeFi space may see more innovation and uptake as a result of this move, which also clarifies things for decentralized platforms like Uniswap.
Even if the conclusion is still up in the air, the prospect of the SEC stopping the investigation is viewed as a win for decentralized exchanges and their prospects in the US market.
Also Read: Coinbase CEO Brian Armstrong Celebrates SEC’s Investigation Closure into OpenSea
Uniswap Probe Closure Comes as SEC Changes View on Crypto Sector
The U.S. Securities and Exchange Commission (SEC) may be changing how it regulates cryptocurrencies after recently launching investigations into a number of cryptocurrency companies.
The SEC has started to reevaluate its investigations during a period of increased scrutiny, choosing to end some of its inquiries into companies in the decentralized finance (DeFi) sector.
This change might be a result of the SEC’s increasing understanding of the difficulties in overseeing decentralized platforms and the requirement for more precise regulatory frameworks.
The future of crypto regulation is uncertain, but it may be more open to innovation in the industry given that some probes have been concluded while others are still pending.