SEC Drops Uniswap Probe; Circle's Allaire Calls for US Stablecoin Registration; Bitcoin ETFs See Massive Outflows

Coin WorldWednesday, Feb 26, 2025 7:37 am ET
1min read

The U.S. Securities and Exchange Commission (SEC) has concluded its investigation into Uniswap Labs, the Brooklyn-based company behind the popular decentralized exchange Uniswap. The regulator had previously signaled its intent to charge Uniswap Labs with operating as an unregistered securities broker and exchange, as well as issuing an unregistered security. However, the SEC has now dropped these investigations, marking a significant shift in its stance towards the decentralized finance (DeFi) sector.

Jeremy Allaire, co-founder of Circle, the firm behind the popular USDC stablecoin, has called for U.S. registration for all dollar-backed cryptocurrency issuers, regardless of their operational base. In an interview, Allaire emphasized the importance of consumer protection and financial integrity, stating that offshore companies or those based in regions like Hong Kong should be required to register in the U.S. if they want to offer their dollar stablecoins in the country.

U.S.-listed spot bitcoin exchange-traded funds (ETFs) saw a cumulative daily outflow of $937.78 million, marking the largest single-day redemption since their launch in January 2024. Fidelity’s FBTC saw the most substantial outflows, with $344.65 million in redemptions. Analysts attribute the waning interest in these funds to a decline in the premium of CME-listed bitcoin futures contracts, diminishing the profitability of cash and carry arbitrage strategies.

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