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The U.S. Securities and Alternate Fee (SEC) has despatched letters to a number of enterprise capital (VC) companies over their hyperlinks to the operator of the Ethereum (ETH)-based decentralized trade Uniswap, in accordance 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 companies over their hyperlinks to Uniswap Labs.
In keeping with the net publication, VC companies 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 because the 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 improper.”
“…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 will not be inherently inventory certificates, and tokens will not be inherently securities.
Even when securities have been concerned, the Uniswap protocol (and net app, and pockets) don’t fall beneath definitions of the ‘securities trade’ or ‘dealer.’
Beneath legislation, the Uniswap protocol must be particularly designed ‘for’ ‘securities’ – and it’s not. It’s for normal functions, primarily used for commodities.”
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