SEC drops investigation into Uniswap Labs causing UNI to surge 5%

4 months ago

The US Securities and Exchange Commission (SEC) officially closed its probe into Uniswap Labs without taking enforcement action, according to a Feb. 25 statement.

The investigation, which began implicit 3 years ago, centered connected allegations that Uniswap Labs operated arsenic an unregistered broker, exchange, and clearing bureau and issued an unregistered security. 

Uniswap Labs characterized the result arsenic a triumph for DeFi, reinforcing the statement that decentralized exertion operates wrong the ineligible framework.

In April, the SEC issued a Wells announcement to Uniswap Labs outlining imaginable charges based connected claims that the steadfast engaged successful unregistered securities activities. The probe has concluded this week, and nary further ineligible enactment is planned. 

Jake Chervinsky, main ineligible serviceman astatine Variant Fund, congratulated Uniswap connected a “clean measure of wellness from the SEC,” adding that “it’s a travesty” that large crypto players discarded clip and resources warring regulatory overreach.

Following the news, Uniswap’s governance token UNI jumped astir 5% from $7.87 to $8.28 based connected CryptoSlate data.

Regulatory implications

Throughout the investigation, Uniswap Labs maintained that it does not run arsenic a broker, that the Uniswap Protocol does not represent an speech oregon clearing bureau nether US securities law, and that UNI is not a security. 

Hayden Adams, laminitis of Uniswap, criticized the SEC’s archetypal approach, describing it arsenic portion of a broader signifier of regulatory enforcement applied arbitrarily to DeFi projects without wide ineligible grounding.

Adams argued that the SEC attempted to enforce a regulatory model designed for centralized fiscal institutions connected decentralized networks. This mismatch fails to admit the structural differences betwixt the 2 systems. 

He further emphasized that self-custodied funds and self-executing astute contracts connected nationalist blockchains supply transparency not contiguous successful accepted concern (TradFi) markets, making existing regulatory approaches ill-suited for DeFi.

According to Adams:

“This is simply a immense win, not conscionable for Uniswap Labs but for DeFi arsenic a whole. It reaffirms what we’ve said each along: that decentralized exertion and self-custody are inherently antithetic from the centralized, intermediated systems they purpose to replace.”

He noted that the enquiry had placed a important fiscal and operational load connected the company, diverting resources and causing accent associated with national investigations. Adams described the acquisition arsenic emblematic of a broader contented wherever the investigative process serves arsenic a punitive measure, discouraging innovation wrong the US.

Looking forward, Adams expressed optimism astir moving with Congress and regulatory bodies to found wide rules tailored to DeFi. He noted that emerging regulatory perspectives wrong the SEC look to beryllium shifting toward a much constructive approach.

However, helium besides reiterated the request for regulatory frameworks that admit the unsocial quality of decentralized fiscal technologies portion promoting transparency, access, and innovation.

The station SEC drops probe into Uniswap Labs causing UNI to surge 5% appeared archetypal connected CryptoSlate.

View source