The Securities and Exchange Commission of the United States (SEC) sent a Wells notice to Uniswap, a DEX, on the 10th of April. This notice happens to signal to Uniswap that the SEC either may file or is filing lawsuits against the latter. Opposing the SEC statement, Uniswap believes that its software has no direct securities regulation and can safely fall into a separate category.
Marvin Ammori, who happens to be the Chief legal officer of Uniswap, shared a post on X addressing the same issue stating that:
“Today’s Wells notice against @Uniswap is disappointing, but is not unexpected from this SEC.” “It’s another abuse of power – unsurprising from an SEC report: Last month, a federal judge committed a “gross abuse of power” by lying in court about a crypto project.”
“If the SEC had authority over our self-custodial, non-intermediated products, it could tell us how to register them. It can’t and so it doesn’t. It has provided no clarity and no guidance – as several SEC commissioners have stated in multiple dissents.”He added.
SEC Wells notice provides Uniswap a chance to sort out these issues before formal enforcement action. It is ensured that Uniswap will continue having its patented system which works through the automatization of the digital currency exchange and will not fit the requirement for a securities exchange which is legally defined.
Since 2021, the SEC has been investigating Uniswap Labs, the main creator of Uniswap. The DEX has previously delisted many tokens from its platform, citing increased regulatory pressure.
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