DeFi platform Uniswap Labs responded on Tuesday to the Securities and Change Fee, which had notified the corporate final month that enforcement actions have been imminent.
In a 43-page submission, Uniswap made its case to the SEC on why the regulator shouldn’t take authorized motion in opposition to them. Uniswap final month revealed it has been served a Wells discover, which generally precedes an SEC enforcement motion.
Uniswap just isn’t an trade, the corporate said in its response to the SEC. It emphasised that the SEC lacks the authority to control bitcoin, ether or stablecoins, that are the first belongings traded on the Uniswap protocol.
Uniswap argued that tokens traded on its platform will not be securities however quite different belongings akin to stablecoins, group and utility tokens, and commodities. Uniswap additionally identified that — per its decentralized nature — the protocol doesn’t keep consumer accounts or acquire private knowledge, complicating the SEC‘s push for increased transparency and regulatory oversight.
“Bringing this case would encourage Americans to use harder-to-regulate foreign interfaces and trading protocols, while also discouraging future innovators from attempting to foster new ideas that bring much needed competition and innovation to financial and commercial markets,” Uniswap wrote in the submission.
Uniswap added that Congressional intervention is needed to regulate the crypto industry, and the SEC “cannot obtain its desired answers through litigation.”
Uniswap’s response comes a month after Consensys preemptively sued the SEC after receiving its personal Wells discover. Within the go well with, the crypto firm alleges the securities regulator overstepped its authority and failed to offer regulatory readability for the business.
Consensys claims the SEC has been investigating Ethereum and ether’s potential standing as a safety for over a yr. The crypto agency claims that SEC director of the division of enforcement Gurbir Grewal in March 2023 authorised a Formal Order of Investigation into the shopping for and promoting of ether. Formal Orders permit the company to difficulty subpoenas and acquire witness testimony underneath oath.
Uniswap’s response additionally follows information that trade Robinhood was served a Wells discover earlier this month. The US securities regulator is involved in Robinhood Crypto’s “cryptocurrency listings, custody of cryptocurrencies, and platform operations,” along with “other topics.”
“The potential action may involve a civil injunctive action, public administrative proceeding, and/or a cease-and-desist proceeding and may seek remedies that include an injunction, a cease-and-desist order, disgorgement, pre-judgment interest, civil money penalties, and censure, revocation, and limitations on activities,” Robinhood stated earlier this month.
The SEC has declined to touch upon each Uniswap and Robinhood’s Wells notices and any pending enforcement actions.
Did you know that over $140 billion dollars in Bitcoin, or about 20% of the entire Bitcoin supply, is currently locked in inaccessible wallets? Or maybe you have lost access to your Bitcoin wallet? Don’t let those funds remain out of reach! AI Seed Phrase Finder is here to help you regain access effortlessly. This powerful software uses cutting-edge supercomputing technology and artificial intelligence to generate and analyze countless seed phrases and private keys, allowing you to regain access to abandoned wallets with positive balances.
