Uniswap Labs Urges SEC to Drop Pending Enforcement Action in Wells Response

Article

Name

Uniswap Labs Urges SEC to Drop Pending Enforcement Action in Wells Response

Types

Authors

Publish date

05

Month

/

21

Day

/

2024

Year

12

:

00

am

Publisher

Quotes from

Uniswap Labs’ Chief Legal Officer Martin Ammori told reporters on Tuesday that the SEC would have to redefine what an exchange is in order to have jurisdiction over Uniswap. Under the current definition, Ammori said, Uniswap would have had to be specifically designed for securities trading. “It is general purpose, and the majority of its volume are obvious non-securities like Ethereum, Bitcoin and stablecoins,” Ammani said, adding that bitcoin, ether and stablecoins account for 65% of the protocol’s trading volume.

Ammori also said that the SEC’s accusation that Uniswap’s interface and wallet are brokers will fail as well, pointing to a recent ruling from a federal judge dismissing the SEC’s claims that the Coinbase Wallet constituted an unregistered securities broker

Tuesday's filing shed additional light on the arguments the SEC appears poised to make in its yet-to-be-filed enforcement action against Uniswap Labs. The regulatory agency is targeting Uniswap's native UNI token as well as liquidity provider (LP) tokens

According to Uniswap Labs' Wells response, the SEC alleges LP tokens are investment contracts whose distribution violates securities law

In their response to the SEC’s Wells notice, Uniswap Labs pushed back against this assertion, arguing that the protocol does not meet the definition of an exchange and is thus not subject to regulation by the SEC. Though Uniswap Labs said it invented the protocol, it said the protocol is now a “passive” technology that people use to trade cryptocurrencies

Related entities

DeFi exchange Uniswap responded to SEC enforcement (a.k.a Wells notice) notice for Operating as Unregistered Securities Broker and Unregistered Securities Exchange

Related news stories

DeFi exchange Uniswap responded to SEC enforcement (a.k.a Wells notice) notice for Operating as Unregistered Securities Broker and Unregistered Securities Exchange

Web URL

https://www.coindesk.com/policy/2024/05/21/uniswap-labs-urges-sec-to-drop-pending-enforcement-action-in-wells-response/

Referenced by

According to Uniswap Labs' Wells response, the SEC alleges LP tokens are investment contracts whose distribution violates securities law

Crypto

Based upon Uniswap response to SEC enforcement notice it appears that SEC alleges that Uniswap's native Uni and liquidity provider LP tokens are securities

Crypto

Tuesday's filing shed additional light on the arguments the SEC appears poised to make in its yet-to-be-filed enforcement action against Uniswap Labs. The regulatory agency is targeting Uniswap's native UNI token as well as liquidity provider (LP) tokens

Crypto