Uniswap (UNI) a key player in the Decentralized Finance (DeFi) field is facing challenges from the Securities and Exchange Commission (SEC). Uniswap on May 21 responded to the SEC’s Wells notice stating that tokens are not securities.
Uniswap’s Response to Wells’s Notice
Uniswap Labs recently confronted the SEC regarding its looming enforcement actions. The exchange has submitted a 43-page long document that details the reasons why the SEC shouldn’t consider the token as securities.
On May 21, Marvin Ammori, the Chief Legal Officer at Uniswap shared the same over X.
Today, @Uniswap has submitted our response to the SEC Wells notice we received in April.
— Marvin Ammori (@ammori) May 21, 2024
The Uniswap protocol represents an innovation in commerce that solves long-standing problems– with near-instant, intermediary-free, secure trading of any assets. It is the first widely used…
He issued a statement highlighting the projects’s compliance with the US legislation along with arguing that the SEC is surpassing its regulatory authorization. Tokens are a digital file format and store many kinds of value, Ammori added.
Ammori also mentioned that tokens traded over secondary markets are not investment contracts.
SEC VS Uniswap: the Case
It all started on April 10, 2024, when the SEC sent a Well’s notice to Uniswap. The notice was a warning to the exchange and discussed the actions the SEC is considering taking against Uniswap.
According to the SEC, the DeFi exchange had broken the rules and regulations and doesn’t offer any assets in transactions that require registrations. However, Uniswap’s CEO, Hayden Adams responded to the notice and said that the team is ready to fight.
Today @Uniswap Labs received a Wells notice from the SEC.
— hayden.eth (@haydenzadams) April 10, 2024
I’m not surprised. Just annoyed, disappointed, and ready to fight.
I am confident that the products we offer are legal and that our work is on the right side of history. But it’s been clear for a while that rather than…
“I am confident that the products we offer are legal and that our work is on the right side of history,” Adams wrote.
UNI’s Performance Through the Case
The ongoing legal war between the SEC and Uniswap impacting UNI’s performance. At the time of writing, UNI was hovering in bearish behavior standing at $10.96, after a drop of 4.86% intraday.
UNI Price I Source: CoinMarketCap
However, in the past month, UNI’s price surged from $8.08 on April 28 to $9.4616 on May 21. The data indicates that despite of ongoing legal war, Uniswap holders have more trust in the exchange.
