Uniswap targeted by SEC, sparking outrage within the crypto industry
The U.S. Securities and Exchange Commission (SEC) is facing criticism for its actions against Uniswap, with one lawyer stating that the regulator’s case is weak, according to crypto.news. The SEC recently issued a Wells notice to Uniswap, indicating its intention to take enforcement action against the decentralized exchange. However, the specific securities violations are not publicly known. Uniswap’s creator, Hayden Adams, expressed his frustration and determination to fight back against the SEC’s heavy-handed approach. Other industry figures have also come to Uniswap’s defense, accusing the SEC of overstepping its authority and failing to provide clear regulatory guidelines for the crypto industry. They argue that cryptocurrencies should not be shoehorned into outdated securities laws and call for smarter legislation. Laura Sanders, policy counsel at the Blockchain Association, highlighted Coinbase’s previous dispute with the SEC and its criticism of the lack of regulatory clarity. Marvin Ammori, Uniswap Labs’ chief legal officer, argues that the protocol, app, and wallet do not meet the legal definitions of securities exchanges or brokers, and that the SEC’s arguments are weak. Jake Chervinsky, chief legal officer at Variant, goes further, accusing the SEC of trying to drive crypto founders out of the U.S. through fear and intimidation. Chervinsky believes that the SEC can be proven wrong and defeated in court, as recent rulings have gone against the commission. He praises the crypto industry’s innovation and efforts to challenge the SEC through litigation but acknowledges that the situation may worsen before improving. Uniswap’s native UNI token has experienced a significant drop in price following the news of the Wells notice. While Wells notices can result in fines and service shutdowns, it may be challenging for the SEC to shut down Uniswap due to its decentralized nature. However, SEC Chair Gary Gensler seems to believe that Uniswap is not as decentralized as it claims to be.
