US SEC Ended Its Investigation Of Uniswap Labs, Opting Out Of Pursuing Enforcement Action
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Earlier this week, the US Securities and Exchange Commission decided to drop its investigations into Coinbase and Robinhood’s crypto arm, and now, it did the same with Uniswap Labs, the developer behind Ethereum’s largest DEX.
Uniswap now joined the other firms that were officially cleared, as the SEC closed its investigations without pursuing enforcement action.
The decision to scrap the investigation comes almost a year after Uniswap received a Wells notice, which happened in April 2024. At the time, the US SEC was led by former Chair Gary Gensler. Alongside Uniswap, Gensler also targeted SushiSwap, which received a comparable subpoena.
US SEC Is Considering Alternative Ways To Regulate The Industry
As mentioned, Coinbase, Robinhood, as well as Binance, and numerous other crypto-related companies were similarly targeted. However, with the change of administrations and Gensler’s departure from the SEC, the regulator has decided to change its approach to the crypto industry.
Uniswap announced that this is a huge win for DeFi and that it reaffirms what its team had always known — that its technology is on the right side of the law, and that its work will turn out on the right side of history.
Initially, when the SEC first sent the Wells notice, Uniswap Labs decided to fight back, claiming that its protocol does not qualify as an exchange under the current definition. As such, it was also not subject to SEC regulation. The company also said that while it did create the protocol, it is now a passive technology used for crypto trading.
It is worth noting that the SEC itself has not yet released an official statement regarding the matter, but Uniswap’s announcement is in line with other crypto firms and protocols that were previously targeted.
Furthermore, the regulator’s crypto task force reportedly met with numerous industry representatives in February, considering new ways to approach digital asset regulation. Commissioner Hester Peirce, the leader of the task force, said that the arrival of the new SEC chair might lead to a full regulatory shift, which would be in line with Trump’s policy approach, as outlined in Project 2025.
