Uniswap Responds To Wells Notice, Urges SEC To Drop Pending Enforcement Action
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Uniswap Labs has responded to the Wells Notice issued by the United States Securities and Exchange Commission, arguing that its aggressive theories stretch the commission’s reach beyond its jurisdiction. The Securities and Exchange Commission (SEC) alleged that the Uniswap DEX acted as Uniswap Labs’ unregistered securities exchange and broker-dealer. Uniswap Responds To Wells Notice Uniswap had received a Wells Notice from the SEC notifying it that the regulator believed it had broken the law. The SEC accused Uniswap of being an unregistered securities exchange and the interface and wallet of being unregistered securities brokers. However, Uniswap Labs, in its response, pushed back against the SEC’s accusations and argued that Uniswap, as a protocol, does not meet the definition of an exchange and, thus, is not subject to regulation by the SEC. Uniswap Labs stated that while it invented the protocol, it had become a “passive” technology used by people to trade cryptocurrencies. Uniswap Labs argued that the SEC’s “aggressive theories” were an attempt to stretch the regulator’s reach beyond its jurisdiction, adding that it believed the House would pass a bill giving the Commodity Futures Trading Commission (CFTC) authority over digital asset trading. Uniswap also urged the SEC to embrace open-source technology to help improve the outdated commercial and financial systems instead of trying to litigate it out of existence. “We’re confident that our work is on the right side of history. The SEC should not devote its taxpayer-funded resources to bringing a case against us. The SEC is targeting assets and people in nations well beyond its authority. The protocol is used overwhelmingly to trade obvious commodities – ETH, WBTC, and stablecoins alone are about 65% of the trading. An estimated 75% of usage is outside the US. The math on these two means over 90% of the volume…
Filed under: News - @ May 23, 2024 7:24 pm