Uniswap has managed to become a popular DEX (decentralized exchange) in the crypto industry, despite its flaws and shortcomings. The development firm which is largely responsible for its success, Uniswap Labs, recently announced this past Friday that it should be cutting off all access to a few tokens that exist on the protocol that is supported via its own interface.
As to why this has happened, Uniswap Labs has explained that the ever-evolving landscape of regulations’ is the main cause. This makes sense, too, as there have been countless hacks that have impacted protocols and exchanges alike, Uniswap included. In fact, just last year, more than $25 million had been stolen from Uniswap as well as Lendf.Me. The argument for stricter regulations is thus quite sound.
Uniswap and the appearance of tokens that imitate offerings
As far as being able to actually access the protocol itself, Uniswap Labs has often been considered to be the best choice. However, it is far from being the only one that does this, as various aggregators in the world of decentralized finance tend to support this kind of access to Uniswap as well.
The aforementioned development comes around the time when there has been a spike in scrutinizing tokens that have been imitating offerings. These are normally regulated, especially by the SEC and CFTC. Furthermore, Uniswap had published a list that provided details on over 100 such tokens. These tokens ranged from mirror stocks to tokenized stocks to derivatives and options. Among these examples included Tether Gold, stocks such as ‘mirror Tesla’ and ‘mirror Amazon’, and even tokenized versions of Mini Mario Cash and Zelda.
New regulatory landscape
Gary Gensler, the SEC Chair, had recently warned the cryptocurrency industry regarding various securities offerings that have taken tokenized form. Gary had stated that it really does not matter if it is a stable value token that may be backed by securities, a stock token, or even any other kind of digital product which offers synthetic exposure towards the underlying securities. The most important thing right now, Gary added, will be to remain vigilant and exercise extreme caution.
But the abovementioned announcement had highlighted that only the official interface is being discussed with regards to the issue at hand and that the actual protocol itself shall remain unchanged. Unlike that of the interface, the Uniswap Protocol is largely a set of decentralized, immutable, and autonomous smart contracts. As such, anyone with a stable and reliable Internet connection is offered unrestricted access.