- The SEC sent Uniswap Labs a Wells Notice.
- It was referred to by the crypto community as a “war on crypto,” especially DeFi.
The U.S. Securities and Exchange Commission served Uniswap UNI -17.095% Labs with a Wells Notice, signaling an impending litigation, as disclosed today.
It should come as no surprise that the crypto community views this as a serious attack.
Ryan Adams, the co-founder of Bankless, wrote on X, saying, “This is the big one folks.”
A battle on the internet is a war on cryptocurrencies.
Uniswap Labs chose to remain in its nation of origin, in contrast to the numerous teams working on decentralized projects that have chosen to avoid the U.S. in both locations and by preventing its inhabitants from accessing their frontend applications.
Its position has been that it runs an Ethereum-based front-end website that gives users access to the Uniswap protocol, which it does not actively run. However, this always raised the possibility that it would be a prime target for any regulatory agency that tried to crack down on the decentralized finance industry.
Although the SEC has prosecuted cases involving decentralized groups in the past, this is the first time a significant protocol has been targeted.
The co-founder of The Rollup, who goes by Andy on X, wrote: “The war on DeFi has begun; we must bring privacy onchain and continue to build censorship resistant systems.”
Many in the cryptocurrency world showed support for Hayden Adams, the creator of Uniswap, and the company. The industry’s distaste for SEC Chair Gary Gensler was a recurring issue.
Some people were quite supportive of Uniswap Labs in the case of a trial. In response to Adams on X, Variant Fund Chief Legal Officer Jake Chervinsky said, “I’m sorry you have to fight this battle on behalf of everyone in DeFi, but I couldn’t possibly have more confidence in you and your team to prevail.”
Instead of seeing success abroad, some only called for clear regulations to allow the cryptocurrency sector to flourish in the United States.
Marvin Ammori, chief legal officer at Uniswap said, “Today’s Wells notice against Uniswap is disappointing, but is not unexpected from this SEC.”
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
