Largest Ethereum-based Decentralized Exchange Delisting Tokens
What happened: The largest Ethereum-based (CRYPTO: ETH) decentralized cryptocurrency exchange has delisted several tokens ahead of anticipated regulatory scrutiny. Uniswap has removed Tether Gold and tokenized stocks from crypto derivatives platforms like Synthetix.
The move by Booklyn-based Uniswap Labs is in response to US laws preventing the company from selling certain investments.
Why it’s important: The delistings come after an international crackdown on Binance, the world’s largest crypto exchange, which had to suspend trading of its tokenized stocks after regulatory officials in the U.K, Hong Kong, Germany and Italy said they could constitute securities. Decrypt reports that since Uniswap is a US-based website, company officials are anticipating increased scrutiny from the US Securities and Exchange Commission into company operations.
Last week, a cease-and-desist order was filed against crypto lending platform BlockFi by the Texas State Securities Board, over the alleged sale of unregistered securities.
What’s next: SEC Chairman Gary Gensler, says he’s keeping a close eye on “stock tokens” and legal action against token issuers has already been taken, and more is being considered. He says “these platforms—whether in the decentralized or centralized finance space—are implicated by the securities laws and must work within our securities regime.”
Gensler has extensive knowledge of the space, having once taught a course on Bitcoin (CRYPTO: BTC) and blockchain at the Massachusetts Institute of Technology.
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