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. The move by Booklyn-based Uniswap Labs is in response to US laws preventing the company from selling certain investments.
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.”
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.
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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