- April 10, 2024
- Posted by: legaleseblogger
- Category: Related News
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Uniswap Receives SEC Enforcement Action Warning
Defi exchange Uniswap has recently been put on notice regarding an impending enforcement action by the U.S. SEC.
On April 10, Uniswap made public the receipt of a Wells notice from the SEC’s Enforcement Division. This notice is part of a larger regulatory push on crypto assets by the securities regulator, with Chair Gary Gensler emphasizing that most digital assets on blockchains are subject to existing financial regulations.
Gensler has frequently characterized the crypto space as the “Wild West” and has been actively pursuing a tighter regulatory stance through enforcement actions.
Uniswap Founder’s Response
Hayden Adams, the founder and CEO of Uniswap, expressed his frustration and determination to combat the SEC’s actions and defend his company.
In a detailed blog post addressing the SEC’s notice, Uniswap debunked the notion that the majority of cryptocurrencies can be classified as investment contracts. Alongside other industry players like Coinbase, the decentralized exchange argued that the vast majority of traded tokens are stablecoins, utility tokens, and established commodities such as Bitcoin (BTC) and Ethereum (ETH).
“Despite SEC rhetoric that “most” tokens are securities, the reality is that tokens are a digital file format, like a PDF or spreadsheet, and can store many kinds of value. They are not intrinsically securities, just as every sheet of paper is not a stock certificate. We are confident that the products we offer are not just legal – they are transformative.”
Uniswap’s April 10 blog post
DefiLlama data highlights Uniswap as the largest decentralized finance (defi) exchange, boasting over $6.2 billion in total locked value across 16 unique blockchains. CoinGecko figures reveal that the exchange processes 22.5% of the total cryptocurrency trading volume.
After the news broke, the value of UNI token plunged by more than 9%, hovering around $10 according to CoinMarketCap.
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