- Uniswap Labs confirmed that the DEX received a lawsuit warning from the SEC.
- The exchange’s legal chief said that the agency is overreaching its authority.
- Uniswap will fight this potential lawsuit and anticipate a favorable outcome.
Uniswap Labs, the firm behind Ethereum’s largest decentralized exchange (DEX), found itself in the crosshairs of the United States Securities and Exchange Commission (SEC).
The regulatory body issued a Wells Notice to the company, signaling its intention to pursue enforcement action, according to a report from Bloomberg. This development was initially disclosed through a blog post by Uniswap, although the SEC has chosen not to provide commentary at this time.
The nature of the potential legal action remains ambiguous, leaving industry observers and stakeholders in speculation. However, SEC Chairman Gary Gensler’s persistent stance regarding the regulatory oversight of decentralized crypto exchanges offers some clues.
Gensler has previously contended that such platforms, including Uniswap, do not truly operate in a decentralized manner, positioning them within the SEC’s regulatory purview. This suggests that the SEC may allege that the DEX sold unregistered securities, paralleling cases brought against centralized exchanges like Coinbase and Binance.
Marvin Ammori, Chief Legal Officer at Uniswap, conveyed the company’s readiness to confront the potential lawsuit, adding that the firm perceives it as regulatory overreach. “Uniswap Labs is prepared to fight against this abuse,” said Ammori while expressing confidence in a favorable outcome.
“If the SEC had authority over our self-custodial, non-intermediated products, it could tell us how to register them. It can’t, and so it doesn’t. It has provided no clarity and no guidance – as several SEC commissioners have stated in multiple dissents,” said Ammori.
Uniswap’s native token, UNI, experienced an immediate decline of approximately 16%, as per the data from CoinMarketCap. As of 1:15 a.m. ET Thursday, the digital asset is priced at $9.45 with a market capitalization of $5.65 billion.
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