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SEC Issues Notice from Wells to Settle Cryptocurrency Exchange Uniswap

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Uniswap operates on the Ethereum blockchain. Image: NurPhoto (Getty Images)

Decentralized cryptocurrency exchange Uniswap said it received a notice from the U.S. Securities and Exchange Commission (SEC) on Wednesday that it may take enforcement action against it, the company said in a blog post.

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Uniswap is a leading decentralized cryptocurrency market. The New York-based company operates a peer-to-peer platform for users who want to transact entirely on blockchain.

The company did not say why a Wells alert, which is often sent, was issued regulatory authorities to inform respondents of certain charges. The move, however, may be tied to the agency’s efforts to crack down on companies that use digital assets, such as Coinbase, the giant the second largest cryptocurrency exchange.

The feud between SEC and Coinbase is a great example. At the end of March, the judge ruled in favor of the agency in a cause led against Coinbase in which the SEC alleged that the cryptocurrency exchange was engaged in the sale of unregistered securities.

“Taking into account the SEC’s ongoing lawsuits against Coinbase and others, as well as their complete reluctance to provide clarity or a registration path to those legally operating in the United States, we can only conclude that this is the latest political effort to take also targeting top players developing technology on blockchain,” Uniswap said in its blog post.

In the meantime, the company said its entire suite of current products will continue to be available. Additionally, it will continue to ship new products.

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