What happened: The biggest Ethereum-based (CRYPTO:ETH) decentralized cryptocurrency exchange has delisted several tokens ahead of expected regulatory oversight. Uniswap has deleted Tether Gold and tokenized shares of crypto derivatives platforms such as Synthetix.
The move by Booklyn-based Uniswap Labs is in response to US laws that prohibit the company from selling certain investments.
Why it’s important: The deletions come after an international crackdown Binance, the world’s largest crypto exchange, which had to suspend trading in its tokenized shares after regulatory officials in the UK, Hong Kong, Germany and Italy said they could form securities. decode reports that since Uniswap is a US-based website, corporate officials anticipate increased scrutiny by the US Securities and Exchange Commission over corporate activities.
Last week, the Texas State Securities Board filed a cease and desist order against crypto lending platform BlockFi, over the alleged sale of unregistered securities.
What’s next: SEC Chairman Gary Gensler says he is closely monitoring “stock tokens” and that legal action has already been taken against token issuers and more is under consideration. He says that “these platforms – whether in the decentralized or centralized financial space – are involved in the securities laws and must operate within our securities regime.”
Gensler has extensive knowledge of the space and once taught a course on Bitcoin (CRYPTO: BTC) and blockchain at the Massachusetts Institute of Technology.
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