Uniswap Labs has announced that the U.S. Securities and Exchange Commission (SEC) has concluded its investigation into the company, deciding not to file any charges.
The investigation began in April 2024 when the SEC issued a Wells notice to Uniswap, alleging that the decentralized exchange (DEX) was operating as an unregistered securities trading platform and an unlicensed broker-dealer.
In response, Uniswap Labs challenged the legal grounds of the allegations and expressed its readiness for a legal battle. The company emphasized that its operations are based on open and decentralized technologies that do not fall under traditional securities regulations. The SEC’s decision to drop the case marks a significant precedent for the entire DeFi industry.
“This is a major milestone for DeFi. This outcome confirms the legality of our technology and the long-term value of our work,” Uniswap Labs representatives commented.
Experts note that the closure of the investigation may indicate a shift in the SEC’s stance on decentralized finance. In recent years, the regulator has increased oversight of the crypto industry, but amid ongoing legal battles with Coinbase and Binance, its approach to crypto platform regulation may be evolving.
Earlier this month, the SEC dropped its case against Robinhood and suspended its lawsuit against Coinbase. The regulator has also filed a request with the court, along with Binance, to pause proceedings in the lawsuit initiated in June 2023.
Following the news, UNI, the token associated with the Uniswap ecosystem, saw an increase in value. Analysts suggest that the SEC’s decision could boost investor confidence in DeFi projects and have a positive impact on the market.
