VC Giants a16z and Union Square Ventures Subpoenaed by New York Over Uniswap

New York State Attorney General Letitia James has issued subpoenas to major venture capital firms Andreessen Horowitz (a16z) and Union Square Ventures regarding their investments in the decentralized finance (DeFi) platform Uniswap. This move is part of a broader regulatory crackdown on the cryptocurrency sector.

Key Takeaways

• New York Attorney General Letitia James targets Uniswap in regulatory offensive.

• Subpoenas sent to venture capital firms Andreessen Horowitz and Union Square Ventures.

• Uniswap Labs fined $175,000 by the CFTC for violating the Commodity Exchange Act.

• SEC issued a Wells notice to Uniswap in April 2024.

• Regulatory scrutiny on the crypto sector has intensified since the collapse of FTX in 2022.

Background on the Subpoenas

Over the past month, the New York Attorney General's office has sent subpoenas to several venture capital firms that have invested in Uniswap, including Andreessen Horowitz and Union Square Ventures. This action is part of a larger regulatory effort to scrutinize the operations and compliance of cryptocurrency platforms.

A spokesperson for Uniswap stated, "Uniswap Labs is a proud 'Made in New York' pioneer of DeFi technology, which offers a path for all of us to better, fairer access to financial services. We don't wish the burden of unnecessary subpoenas on anyone. But we welcome dialogue any time with any government agency or elected official about the future we can build together when we champion responsible DeFi innovation, especially in our home state."

Regulatory Actions and Penalties

In a separate action, the U.S. Commodity Futures Trading Commission (CFTC) ordered Uniswap Labs to pay a $175,000 civil monetary penalty and to cease and desist from violating the Commodity Exchange Act. This penalty is part of a broader regulatory focus on the cryptocurrency sector, which has intensified since the collapse of FTX and other crypto firms in 2022.

The Securities and Exchange Commission (SEC) also issued a Wells notice to Uniswap in April 2024, alleging that the DeFi platform was acting as an unregistered securities broker and exchange. The SEC has reportedly sent similar letters to Andreessen Horowitz and Union Square Ventures regarding their involvement with Uniswap.

Broader Regulatory Context

Attorney General Letitia James has previously targeted other crypto entities, including Genesis, Gemini, Digital Currency Group, CoinEx, KuCoin, and Celsius founder Alex Mashinsky. This latest action against Uniswap and its investors is seen as part of a continuing effort to regulate the rapidly evolving cryptocurrency industry.

"Letitia James seems to be following in the footsteps of SEC Chairman Gary Gensler, using crypto as a political punching bag," said one anonymous source familiar with the subpoenas. This sentiment reflects a broader concern among crypto industry players about the increasing regulatory scrutiny and its potential impact on innovation and growth in the sector.

Sources

• Andreessen Horowitz, Union Square Ventures Get Subpoenaed by New York Attorney General About Uniswap (UNI), CoinDesk.

• El fiscal general de Nueva York cita a Andreessen Horowitz y Union Square Ventures por Uniswap (UNI), CoinDesk.

• El fiscal general de Nueva York cita a Andreessen Horowitz y Union Square Ventures por Uniswap (UNI), CoinDesk.

• Andreessen Horowitz e Union Square Ventures são intimados pelo procurador-geral de Nova York sobre a Uniswap (UNI), CoinDesk.

• Andreessen Horowitz, Union Square Ventures Nakuha ng Subpoena ng New York Attorney General Tungkol sa Uniswap (UNI), CoinDesk.