Uniswap Could Be Sued By The United States SEC Soon

The SEC recently initiated legal proceedings against UniSwap (UNI) with the aim of impeding the rapid expansion of the DeFi sector. The US Securities and Exchange Commission (SEC) has served a Wells Notice to Uniswap, the primary platform in decentralized finance (DeFi), notifying the company of its intention to initiate legal action.

Another Investigation

Uniswap is currently under investigation by the SEC. The specific allegations against Uniswap Labs, the entity behind the Uniswap protocol but lacking control over it, remain unclear. However, drawing on recent lawsuits against other cryptocurrency firms such as Coinbase, it is possible that the SEC may assert that Uniswap Labs is offering unregistered securities to the public or operating without registration as a broker or exchange.

Recently, Uniswap announced that its protocol has facilitated over $2 trillion in transactions, indicating the increasing interest from mainstream finance in this technology. Sources close to Uniswap Labs informed Fortune that the company is gearing up for a legal battle in court, asserting that its decision to operate transparently in New York rather than offshore underscores its legitimacy.

Fighting Back

In response to the litigation threat by the SEC, UniSwap founder Hayden Adams confirmed that Uniswap Labs indeed received a Wells notice courtesy of the SEC. Hayden went on to say that he is not taken aback, but rather, he is simply infuriated, frustrated, and ready to defend both Uniswap and its community.

However, the founder continued, it has become evident over time that the SEC has opted to target reputable organizations like Uniswap and Coinbase instead of establishing clear and informed regulations. Meanwhile, entities like FTX have been overlooked. This legal battle will likely extend over years, possibly reaching the Supreme Court, with the future of financial technology and the crypto sector hanging in the balance.

Hayden concluded his statement by stating that together, the community can emerge victorious and that the pursuit of freedom is indeed worth fighting for.