Uniswap No Longer Under SEC Review

Uniswap Labs has announced that the United States Securities and Exchange Commission (SEC) has ended the three-year investigation of its platform. The crypto exchange shared this update after years of legal pressure. The SEC had been looking into Uniswap for possible rule violations.

The SEC had accused Uniswap of acting as an unregistered broker and exchange. The agency also said the company sold securities without proper approval. However, Uniswap’s leader, Hayden Adams, revealed that the claims have been dropped.

The SEC Drops Its Claims Against Uniswap

Adams said the SEC, under its past leadership, had wrongly accused Uniswap. He explained that the company is not a broker or an unregistered exchange. He also said UNI, the exchange’s token, is not a security. The SEC has wrapped up its inquiry into these claims.

The words “under the previous admin” stood out in Adams’ message. The crypto industry has been watching how leadership changes affect regulations. Former SEC Chair Gary Gensler was criticized for being too strict on crypto. He later resigned after Donald Trump was elected president again.

Adams announced that the SEC had no clear reason for taking action. He said the agency had tried to push decentralized finance (DeFi) into rules that did not fit. He also said the SEC refused to explain how DeFi projects should follow the law. The lack of clear rules had caused confusion in the industry.

The investigation lasted over three years and cost Uniswap a lot. Adams added that federal investigations can be stressful and feel like punishments. He said such pressure should not stop new ideas from growing. According to Uniswap’s leader, the United States should support innovation instead.

Uniswap’s Leader Believes DeFi Should Not Be Treated The Same As Banks

According to Adams, the latest update is a win for both Uniswap and DeFi. He said decentralized technology is different from traditional finance and DeFi should not be treated the same as banks and financial firms. He stressed that clear rules would help the industry grow.

Adams also said DeFi runs on self-executing code and public blockchains. This helps financial markets stay open and clear to everyone. He noted that old rules created for traditional finance do not work for DeFi. He added that new rules should fit the way DeFi works.

Robinhood, another company, had its case with the SEC dismissed recently. The company said the past SEC leadership focused on legal action. It argued that clear rules would be better than lawsuits. Many in the industry have called for fairer regulations.

According to reports, Coinbase, another well-known exchange, had also been under investigation. The SEC recently ended its review of the case too. Adams said he is happy the new SEC leadership seems more open. He hopes to work with lawmakers to support DeFi.