According to information published by Fortune, the SEC has taken action to file a lawsuit against UniSwap (UNI) in order to hinder the rapidly growing DeFi sector.
The US Securities and Exchange Commission (SEC) has issued a Wells Notice to Uniswap, the leading platform of decentralized finance (DeFi), informing it that it intends to sue the company.
Uniswap has been investigated by the SEC. The institution's allegations against Uniswap Labs, the company that developed the Uniswap protocol but does not control it, are not yet clear. However, based on recent lawsuits filed against other crypto firms like Coinbase, the SEC may allege that Uniswap Labs is offering unregistered securities to the public or is not registered as a broker or exchange.
Uniswap recently announced that its protocol has processed over $2 trillion in transactions, indicating the growing interest of mainstream finance in this technology. Sources close to Uniswap Labs told Fortune that the company is preparing for a “worthy fight” in court. They argue that the company's decision to operate openly in New York rather than offshore proves its legitimacy.
UniSwap founder Hayden Adams made the following statement in response to the SEC's threat of litigation:
“Today Uniswap Labs received a Wells notice from the SEC.
I'm not surprised. I'm just angry, frustrated and ready to fight. I am confident that the products we offer are legal and that our work is on the right side of history. But it has been clear for some time that the SEC has decided to focus on attacking long-time well-intentioned organizations like Uniswap and Coinbase, rather than working to create clear and informed rules. All the while, bad actors like FTX were turned a blind eye. This fight will take years, could go all the way to the Supreme Court, and the future of financial technology and our industry hangs in the balance. If we are together we can win.
I think freedom is worth fighting for. “I think DeFi is worth fighting for.”
*This is not investment advice.