In April last year, the U.S. Securities and Exchange Commission (SEC) issued a Wells notice to the leading decentralized exchange (DEX) Uniswap Labs, accusing it of operating an unregistered securities exchange, engaging in unregistered brokerage or clearing activities, and even issuing unregistered securities, potentially facing legal risks.
Now, this storm has finally subsided, and Uniswap Labs announced early this (26th) morning that the SEC has officially concluded its investigation and taken no enforcement action. The official described this as a "major victory for DeFi" and emphasized:
"This once again proves the fact we have always believed in - the technology we have built is on the right side of the law, and our work is also on the right side of history."
Uniswap: Decentralized finance is the future, and the U.S. can now lead this trend
Uniswap Labs further stated in the statement that DeFi is improving financial markets, allowing users to trade instantly, securely, and transparently without relinquishing control of their assets.
At Uniswap Labs, we are committed to expanding the accessibility of DeFi through technology, enhancing liquidity and price transparency, reducing reliance on intermediaries, and lowering transaction costs. The products we have built not only serve users but also make the entire financial system more robust.
Uniswap also expressed its affirmation for the new SEC leadership, believing that it is re-examining enforcement investigations and litigation within the industry, not just in the Uniswap case, and recognizing that there are more effective ways to protect American consumers.
The conclusion of this investigation is not only a victory for Uniswap Labs but also a shared victory for the DeFi community, developers, and users, as we are working to build a better financial system.
Finally, Uniswap reiterated that they have always been willing to engage in dialogue with regulators and policymakers to establish a clear and reasonable DeFi regulatory framework, and look forward to more constructive discussions in the future.
Hayden Adams: The SEC's investigation cost us 3 years and millions of dollars
In this regard, Uniswap co-founder Hayden Adams wrote that the SEC's (previous administration) investigation lasted for 3 years, forcing them to spend countless hours and millions of dollars, even bringing personal-level pressure. He pointed out:
The intrusiveness and pressure of federal investigations are extreme, and there is a saying in the legal community: "The investigation itself is the punishment." But this should not be the price that American innovators have to pay.
He emphasized that Uniswap Labs is not a broker, the Uniswap protocol itself is not an unregistered exchange or clearing house, and it is not operated by Uniswap Labs. Furthermore, the UNI token is not a security.
However, the SEC still took enforcement action against Uniswap Labs, even without a clear legal basis, attempting to forcibly incorporate DeFi into a regulatory framework that does not fit its essence, while not providing clear rules or compliance paths.
Now, the SEC's allegations have been withdrawn, and he expressed that this victory belongs to the entire DeFi ecosystem:
"This once again proves our long-standing position: decentralized technology and self-custody are fundamentally different from the centralized intermediary systems they are replacing."
He further pointed out that self-custodial funds running on smart contracts on public blockchains have brought unprecedented transparency to financial markets. Directly applying the regulatory framework for the opaque traditional financial market (TradFi) to DeFi simply does not work.
Finally, Adams expressed gratitude for the new SEC leadership's more constructive regulatory approach and looks forward to future collaboration to ensure that DeFi can thrive in the U.S. rather than being forced to migrate overseas.
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