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SEC issued a Wells notice to DeFi protocol Uniswap on April 10 and the Uniswap team stated on the X that they were ready to fight.
The U.S. Securities and Exchange Commission (SEC) has set its sights on decentralized exchange (DEX) Uniswap, issuing a Wells notice signaling its intent to pursue enforcement action. This news comes amid ongoing regulatory uncertainty surrounding the crypto industry.
Uniswap’s Defense Against the Notice
After the notice, the Uniswaps team became active and the chief officer of the exchange Marvin Ammori showed their disappointment on platform X (formerly Twitter) regarding the notice. He wrote it was unexpected and disappointing. He wrote it is an abuse of power and unsurprising from the U.S. Securities and Exchange Commission.
Hayden Adams, Uniswap’s CEO, took to social media platform X to voice concerns about SEC actions. He criticized the agency for targeting the exchanges like Uniswap and Coinbase.
Wells notices serve as initial alerts that communicate to the recipients the potential charges being contemplated by the regulatory body. These notifications often forego formal legal proceedings and investigations against the entity or firm. The notice stated that the agency is planning enforcement action against the entity.
However, Adams did not disclose the whole matter but when we see the history the well notice was sent to those firms who alleged the unregistered offer and sale of securities.
Adams expressed disappointment and wrote that the company’s products are all legal and perform well. He also said that the exchange would fight against the charges.
He stated on X that the Uniswap Protocol achieved $2 trillion in volume and their work is transparent, fair, secure, and accessible powering an entire industry.
He said,”I’m frustrated that the SEC seems to be more concerned with protecting opaque systems than protecting consumers. And that we’ll have to fight a US government agency to protect our company and our industry.”
Adams emphasized the importance of fighting for the freedom and future of DeFi, hinting at a prolonged legal battle that could reach the Supreme Court.
Moreover, the exchange commission investigating Uniswap since 2021 and the decentralized exchange platform has removed several tokens in the past due to increasing regulatory pressure.
Furthermore, the agency’s spokesperson refrained from confirming or denying the possibility of an investigation, stating that the SEC does not provide any comment on such matters.
Uniswap’s Native token Plunged after The Notice
Uniswap’s native token witnessed a major drop after the notice. The token took a drop of approximately 11.92% as per coinmarketcap data. It looks like the news of Wells’s notice to exchange impacted badly to the cryptos price.
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
