Uniswap, the prominent Decentralized Exchange (DEX), has taken action in response to the Wells Notice it received earlier from the United States Securities and Exchange Commission (SEC). In a filing, the trading platform officially shared its position regarding the lawsuit.
SEC’s allegations against Uniswap
A Wells Notice is a formal warning sent by the SEC to inform the recipient that the agency is planning to bring an enforcement action against it. Notably, the Wells Notice from the SEC suggested that Uniswap’s contracts serve as depositories for securities.
In defense, the exchange said it neither acts as a depository nor engages in clearing activity as it does not provide advice to the users of the protocol or the interface. Furthermore, Uniswap claims that it does not solicit users to perform swaps on the protocol, adding that general public statements do not amount to solicitation.
The distribution of the native UNI token was also addressed in the Wells Notice. In contrast, Uniswap argued that it does not meet the criteria of the Howey test to be classified as a securities offering.
Uniswap claims the SEC wants to expand its reach to cover all digital value. The company’s CEO, Hayden Adams, believes the agency wants to be the “world internet police” as he expressed his dissatisfaction in an X post.
He emphasizes promoting internet innovation and highlights concerns about the SEC’s insufficient consumer protection causing harm in the US.
Uniswap: ready to defend its cause in a legal battle
Since 2021, the company has been in the crosshairs of the SEC. This recent Wells Notice from the agency has got many to believe it is an attempt to hinder the rapidly expanding DeFi sector.
According to Marvin Ammori, the company’s chief legal officer, the SEC doesn’t have jurisdiction over securities and he also points out the lack of regulatory clarity.
He strongly criticized the SEC’s Wells notice, labeling it as “another abuse of power.” Additionally, the SEC and other regulators in the US are known for their legal actions against crypto companies.
Similar charges that the agency brought against Uniswap were also filed against Robinhood, Coinbase, and Binance Exchange last year.
While some crypto firms have chosen to defend their cause against the SEC, Uniswap said it is also ready to fight back.