Securities and Exchange Commission chief Gary Gensler said last month that DeFi products could be more regulated in the future.
In particular, tokenized shares can become fatal for many crypto exchanges without an appropriate license. Those responsible for Uniswap suspected this and therefore removed them from the decentralized exchange.
Regarding the SEC’s investigation, a Uniswap spokesperson said, “We strive to comply with laws and regulations by responding to all requests from the regulator.” However, the SEC itself did not comment on this statement in any way.
Uniswap Rate drops after reports of SEC investigation
The news also had a negative impact on the UNI rate. While most other cryptocurrencies are in the black, UNI dropped to $28.90 in just two hours. With a market capitalization of $14.8 billion, Uniswap remains the eleventh most valuable cryptocurrency on Chainlink with a gap of $800 million from its closest competitor – ranked 12th in the Litecoin crypto asset rating.
If the SEC is charged, the price could fall even further. Ripple’s XRP price dropped to $0.20 after the SEC indictment. Meanwhile, XRP was able to note partial success in litigation with the regulator and, of course, recover in terms of value.
This shows that the collapse of UNI may not happen, even with a lengthy investigation and indictment.