The post Uniswap Labs Replies to SEC Wells notice appeared on BitcoinEthereumNews.com.

Uniswap Labs has finally filed a response to the Wells notice from the Securities and Exchange Commission (SEC) and called on the agency to abandon its enforcement action against the company. The notice, released in April, alleges that the company has violated securities laws by functioning as an unregistered securities exchange and broker. Uniswap Labs claims that the SEC does not have jurisdiction to regulate its decentralized protocol under current legal categorizations. Uniswap Challenges SEC’s Jurisdiction The Chief Legal Officer of Uniswap Labs, Martin Ammori, said in the company’s response that the SEC would have to expand the definition of an exchange in order to regulate the firm. In his argument, Ammori opined that most tokens traded on the Uniswap Protocol are not securities under the federal law. The company argues that the SEC has failed to give clear definitions of which digital assets are considered securities hence causing a lot of confusion to DeFi projects. Today we responded to the SEC’s Wells notice We believe DeFi is revolutionary and we’re going to fight to protect it Summary of our response and the full 40 page document here:https://t.co/u4fEWHVMVu — Uniswap Labs 🦄 (@Uniswap) May 21, 2024 The company underlines the decentralised approach of its protocol, stating that the protocol is self-governed and has no affiliation with Uniswap Labs as a company. Moreover, it argues that its independence means that it cannot be held accountable for compliance with the securities laws. Legal Contentions Over Regulatory Authority In response to the Wells notice, Uniswap Labs challenges the SEC’s understanding of Rule 3b-16, which broadens the meaning of “exchange” to include DeFi platforms. The company has argued that this expansion violates the Exchange Act and goes beyond the jurisdiction of the SEC without the approval of the Congress. The company has stated that…

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Filed under: News - @ May 22, 2024 8:20 am