Axios reports that several venture capital firms, such as a16z and Union Square Ventures, have been contacted by the SEC regarding their relationship with Uniswap Labs. The SEC may be planning to sue Uniswap for operating as an unregistered exchange. To date, Uniswap Labs has raised more than $170 million in venture capital, with the latest funding round occurring in late 2022, valuing the company at nearly $1.7 billion.

This situation highlights the increasing scrutiny that regulators are placing on the decentralized finance (DeFi) sector. As Uniswap Labs faces this legal challenge, it may encounter significant obstacles that could impact the company's operations and valuation. If the SEC proceeds with the lawsuit, it could set a precedent that influences how other DeFi platforms operate and raise funds in an evolving regulatory landscape. Investors should closely monitor these developments, as they may lead to heightened volatility and reshape the future of decentralized exchanges.