Just In: US SEC is gearing up to take action against DeFi platform Uniswap

• Uniswap’s founder announced that the labs received a Wells Notice from the US SEC
• This could indicate that the commission could soon launch an action against the most popular DeFi protocol

The United States Securities and Exchanges Commission (SEC) has reportedly started to set the base against one of the leading DeFi platforms – Uniswap. The speculation of a possible legal action against the crypto-focused protocol comes after the commission sent a Wells Notice to Uniswap Labs. The announcement of the notice was made by the founder of Uniswap – Hayden Adams today.

Uniswap becomes SEC’s new favourite crypto player

Launched in 2018 on top of the Ethereum blockchain, Uniswap has grown to become the biggest decentralized exchange in the cryptocurrency world. According to CoinMarketCap, the DeFi protocol had a trading volume of over $1 billion at press time. However, its massive growth has now caught the attention of one of the most infamous actors in the crypto space – the US SEC.

Realistic or not, here’s UNI’s market cap in BTC’s terms

In a post on X (formerly Twitter), Adams expressed that the notice did not come as a surprise but was “Just annoyed, disappointed, and ready to fight.” The founder also asserted that the products offered on Uniswap were legal and that their “work is on the right side of history”.

Adams also stated that the commission continues to attach “long-time good actors like Uniswap and Coinbase”. However, it paid no attention to “bad actors like FTX”, a crypto-exchange that declared bankruptcy in November 2022, resulting in thousands of investors losing money. He further said,

“And that we’ll have to fight a US government agency to protect our company and our industry. This fight will take years, may go all the way to the Supreme Court, and the future of financial technology and our industry hangs in the balance. If we stand together we can win. I think freedom is worth fighting for. I think DeFi is worth fighting for. And of course, we won’t stop shipping. Stay tuned”

While the founder of the exchange holds strong ground, the same could not be said about the DeFi protocol’s native token – UNI. According to CoinMarketCap, at press time, UNI was trading at $10.49 and registered a downfall in its price by 6.67% in the past hour. The coin had a market cap of over $6 billion, while its trade volume stood at over $226 million.