Uniswap received a Wells Notice from the SEC in early April, indicating that it may face regulatory litigation. However, Uniswap Labs responded to the Wells Notice from the SEC yesterday, stating that the UNI token is merely a file format and that Uniswap is just a computer program, refuting the SEC’s viewpoint.
Decentralized exchange leader Uniswap received a Wells Notice from the U.S. Securities and Exchange Commission (SEC) in early April, and based on the experience of previous cryptocurrency companies, Uniswap may face regulatory litigation. However, Uniswap Labs responded to the Wells Notice issued by the SEC in an article published on its official blog yesterday (21).
In the article, Uniswap Labs believes that the SEC should embrace open-source technology that can improve business and financial systems, rather than stifling it through litigation. They also state that Uniswap is a secure, low-cost, and transparent infrastructure that can “protect investors and maintain fair, orderly, and efficient markets.” However, the SEC is attempting to stifle a project that is fulfilling the SEC’s mission.
UNI token is just a file format
Furthermore, in the Wells Notice, the SEC claims that the Uniswap protocol is an unregistered securities exchange controlled by Uniswap Labs, the Uniswap interface is an unregistered securities broker-dealer, and the UNI token is an investment contract. However, Uniswap Labs states in the article that the UNI token and the Uniswap protocol are simply file formats and computer programs, refuting the SEC’s determination that the UNI token is a security.
Uniswap Labs General Counsel: SEC must redefine exchanges to have jurisdiction over Uniswap
According to reports, Uniswap Labs General Counsel Martin Ammori stated yesterday that the SEC must redefine exchanges in order to have jurisdiction over Uniswap. According to the current definition of exchanges, Uniswap would have to be designed to trade only securities. However, currently, 65% of the trading volume on Uniswap consists of non-security tokens such as Bitcoin, Ethereum, and stablecoins.
Furthermore, Martin Ammori also stated that based on a recent federal court ruling, which rejected the SEC’s allegations that Coinbase’s wallet constituted an unregistered securities broker-dealer, it can be inferred that the SEC’s allegations against the Uniswap interface and wallet as unregistered securities broker-dealers may also fail.
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