According to February 25, the Securities and Exchange Commission (SEC) officially concluded an investigation into the UNISWAP Lab without taking enforcement action. statement.
The investigation, which began more than three years ago, concentrated on allegations that UNISWAP Labs operated as an unregistered broker, exchange and clearing agency and issued unregistered security.
Uniswap Labs characterized the outcome as a victory for Defi, reinforcing the argument that decentralized technology works within a legal framework.
In April, the SEC issued a Wells Notice to the UNISWAP Lab, outlining potential charges based on claims that the company had engaged in unregistered securities activities. The investigation concludes this week and no further legal action is planned.
Jake Chervinsky, Chief Legal Officer of the Variant Fund; congratulations Regarding the “clean health bill from the SEC,” Uniswap added, “it’s a tragedy,” which wasted the time and resources to combat the overrestriction.
Following the news, Uniswap’s governance token Uni jumped about 5% from about 5% to $7.87 to $8.28 based on encrypted data.
Regulatory implications
Throughout the investigation, UNISWAP Labs argued that it would not act as a broker, that the UNISWAP protocol would not constitute an exchange or clearing agency under the US securities law, and that UNIs were not security.
Hayden Adams, founder of Uniswap; It was criticized The SEC’s first approach describes it as part of a broader pattern of regulatory enforcement that was arbitrarily applied to the Defi project without clear legal basis.
Adams argued that the SEC sought to impose a regulatory framework designed for centralized financial institutions on a decentralized network. This mismatch cannot recognize the structural differences between the two systems.
He furthermore, independent funding and self-executing smart contracts on public blockchains provide transparency that is not present in traditional financial (Tradfi) markets, making existing regulatory approaches inappropriate for Defi. I emphasized that.
According to Adams:
“This is a huge victory not only for Uniswap Labs, but for Defi as a whole. That reaffirms what we’ve been saying all along. Decentralized technology and independence are what they aim to replace. It’s essentially different from a centralized, interventional system.”
He said the investigation placed a significant financial and operational burden on the company, diverting resources and causing stress related to the federal investigation. Adams described the experience as a symbol of a broader issue in which the research process serves as a punitive measure to discourage innovation within the United States.
Looking forward to it, Adams expressed optimism about working with Congress and regulatory bodies to establish clear rules tailored to debt. He noted that new regulatory perspectives within the SEC appear to be shifting towards a more constructive approach.
However, he also reiterated the need for a regulatory framework that recognizes the unique nature of decentralized financial technology, while promoting transparency, access and innovation.
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