In a significant development, the US Securities and Exchange Commission (SEC) allegedly intends to file a lawsuit against UniSwap (UNI), a leading decentralized finance (DeFi) platform, in a bid to curb the rapid expansion of the DeFi sector.
According to reports from Fortune, the SEC has issued a Wells Notice to UniSwap, notifying the company of its intention to initiate legal action.
While specific details regarding the SEC's allegations against UniSwap Labs, the entity behind the Uniswap protocol, remain undisclosed, the SEC may assert claims similar to those in recent lawsuits against other crypto firms like Coinbase. Allegations may include offering unregistered securities or operating without proper registration as a broker or exchange.
UniSwap, which recently disclosed processing over $2 trillion in transactions, signaling mainstream finance's increasing interest in DeFi, appears poised to defend itself vigorously. Sources close to UniSwap Labs indicated that the company is gearing up for a robust legal battle in court, asserting its legitimacy by openly operating in New York rather than offshore.
In response to the SEC's threat of litigation, UniSwap founder Hayden Adams expressed a mixture of anger, frustration, and determination. He emphasized his confidence in the legality of UniSwap's products and the company's alignment with the right side of history. Adams criticized the SEC's focus on targeting reputable organizations like UniSwap and Coinbase instead of establishing clear regulatory guidelines. He underscored the importance of fighting for financial freedom and the future of decentralized finance.
As this legal saga unfolds, the outcome could have significant implications for the future of financial technology and the broader cryptocurrency industry.
Edmund
JinseFinance
Xu Lin
Hui Xin
Sanya
Cointelegraph