- Uniswap Labs is opposing SEC’s rule change to expand the definition of ‘exchange’
- UNI has been swinging between $6 and $12 since April
Uniswap Labs [UNI] has expressed reservations against the U.S SEC’s proposed amendments, which could expand the definition of ‘exchange’ and the agency’s mandate over DeFi (Decentralized Finance).
Shedding light on the SEC’s move, Chief Legal Officer of the firm behind Uniswap, Katherin Minarik, said,
“Today, Uniswap Labs urged the SEC not to proceed with its proposed rulemaking that would dramatically and improperly expand the definition of an ‘exchange’ to include DeFi and more.”
The agency has been seeking to expand the definition of an exchange, as captured by the Exchange Act of 1934. Apparently, the SEC has sought to cover DeFi within this expansion, as per its proposed amendments issued in April 2023.
It means that, if adopted, even DeFi would fall within the purview of the agency. According to Uniswap Labs, this SEC’s expansion of the term ‘exchange’ is unnecessary since the agency lacks the authority to make such general interpretations.
“The SEC and the industry have better ways to spend their resources than in litigation over an unlawful rule.”
Finally, Uniswap Labs also claimed that such a move would allow the SEC to continue with regulations by enforcement, something that has unsettled the industry.
UNI’s price action
Source: UNI/USDT, TradingView
Since receiving a Wells Notice from the SEC in April 2024, the altcoin has shed over 40% of its value. It dropped from around $12 to just above $6, with the key demand zone marked by cyan.
Greater regulatory clarity in the U.S saw it bounce from the demand zone and reclaim the $12-mark again. However, overall negative sentiment dropped it back to the demand zone in July.
Hence, the question – Will UNI retest the supply zone (red) near $12 again?
The Relative Strength Index (RSI) improved on the charts. While this can be seen as a sign of increasing buying pressure, the indicator seemed to be below the neutral level. This could further delay recovery in the short term.
Besides, recent whale sell-offs could further impede UNI’s recovery and delay bulls’ journey to the $12-mark.
