In the report by Wall Street Publication, the SEC is aiming to discover how investors use Uniswap and how the service is marketed, and it also wants information on crypto lending applications. The report further indicates the SEC is looking to establish whether Uniswap and the unmentioned lending apps resisted oversight.
In August 2021, SEC chairman, Gary Gensler, indicated the organization was looking to regulate DeFi projects, specifically those that reward participants with valuable tokens or similar incentives, no matter how “decentralized” they say they are.
This recent leak from the SEC has elicited sharp reaction from Uniswap defendants.
“Uniswap is committed to complying with the laws and regulations governing our industry and to providing information to regulators that will assist them with any inquiry.”
DeFi has witnessed explosive growth, growing by 1,150% in 2020 / 2021, with $131.37 billion in assets committed in various DeFi applications such as Uniswap.
Uniswap is the dApp holding most of these assets, with $15.14 billion in total value currently locked on its smart contracts as of early September 2021.
Lending protcols are the next valuable applications in DeFi after Uniswap.
Below you can see some of the leading DeFi protocols and their TVL, all which come right after Uniswap:
Aave – $14.61 Billion
Curve – $12.51 Billion
Compound – %12.02 Billion
Among decentralized applications:
Uniswap V3 has 50.3% of DEX volumes
Uniswap V2 has 24%, so far
Uniswap has faced prior scrutiny from its own users after it removed over 100 tokens from its main interface. Speculation has since come up that a number of tokens removed could be considered securities by global regulators and some of them were synthetic equities tokens.
While nothing may come from the investigation, this is being interpreted as an indicator that SEC wants to apply greater oversight over the decentralized space.