- Uniswap Labs, has been the subject of an SEC investigation since 2021.
- Marvin Ammori, chief legal officer of Uniswap, verified the notification from the regulator.
The decentralized exchange Uniswap has received a Wells notice from the U.S SEC. Marvin Ammori, chief legal officer of Uniswap, verified the notification from the regulator on April 10 on X (previously Twitter).
The SEC formally notifies companies or individuals that they plan to propose enforcement action against them with a Wells notice. In response to this notification, the receiver is invited to provide a written justification (a “Wells submission”) for the non-approval of the proposed action.
Arbitrary Enforcement
With Uniswap, users can automate token transfers on the Ethereum blockchain, eliminating the need for centralized exchanges and other middlemen. This allows them to swap many crypto tokens at once.
The primary creator of Uniswap, Uniswap Labs, has been the subject of an SEC investigation since 2021. In response to increasing regulatory pressure, the DEX has delisted a number of tokens from its platform in the past.
Before, Uniswap Labs claimed that it was just the software developer who was responsible for creating the app’s front-end. Uniswap protocol, which is open-source autonomous code, and its front-end are two distinct things. Coinbase and Binance, two cryptocurrency exchanges, have previously been the targets of such warnings from the SEC, which threatened legal action.
According to Ammori, the Uniswap Protocol, together with its web app and wallet, does not fulfill the legal requirements of a securities exchange or broker. He went on to say that the protocol is in favor of crypto rules and the straightforward rule of law that Americans demand, rather than arbitrary enforcement and the persistent misuse of power.
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