The U.S. Securities and Exchange Commission (SEC) has alerted Uniswap Labs, the primary developer of one of the world’s largest cryptocurrency exchanges, of potential enforcement action, as stated in a blog post on Wednesday.

The specific reason for the SEC’s warning to Uniswap was not immediately clarified in the blog post, but it is likely related to the regulator’s efforts to apply U.S. securities law to companies in the digital asset space, similar to Coinbase (NASDAQ: COIN).

The SEC chose not to provide a comment regarding the blog post.

The SEC’s dispute with Coinbase, the largest publicly traded cryptocurrency exchange globally, revolves around a central argument: whether digital assets should be considered investment contracts resembling stocks or bonds, thus falling under SEC regulation.

“In light of the SEC’s continued legal actions against Coinbase and other entities, combined with their outright refusal to offer clarity or a pathway to registration for those operating lawfully within the U.S., we can only infer that this is another political move to target even the most reputable entities developing technology on blockchains,” the blog post stated.

Uniswap serves as a cryptocurrency marketplace for developers, traders, and liquidity providers involved in decentralized finance (DeFi). DeFi operates on an open network, functioning on a peer-to-peer system where transactions bypass centralized entities such as banks or brokerages.