SEC Drops Investigation Into Uniswap Labs, Signaling Shift in Crypto Regulation
The U.S. Securities and Exchange Commission (SEC) has officially closed its investigation into Uniswap Labs without pursuing enforcement action, marking a significant turning point for the decentralized finance (DeFi) sector and potentially signaling a broader regulatory shift under the new administration.
Uniswap Labs, the developer behind the popular decentralized exchange protocol, announced on February 25 that the SEC had concluded its multi-year probe, which had escalated in April 2024 when the company received a Wells notice under former Chair Gary Gensler’s leadership.
Uniswap said in its social media post, “This is a huge win for DeFi and reaffirms what we have always known – that the technology we build is on the right side of the law, and our work is on the right side of history.”
SEC Ends its Three-Year Investigation Into Uniswap
Beginning in 2021, the probe focused on claims that Uniswap ran as an unregistered securities broker and exchange and that its UNI token was an unregistered security. The corporation regularly maintained throughout the inquiry that it does not function as a broker, that the Uniswap Protocol is neither an exchange or clearing agency under securities law, and that UNI is not a security.
Founder and CEO of Uniswap Labs Hayden Adams attacked the SEC’s attitude during the probe, characterizing it as “arbitrary enforcement” devoid of defined rules. He pointed out that the investigation had seriously taxed the business both financially and practically.
“The SEC sought to assert that Uniswap Labs issued an unregistered security, operated an unregistered broker, exchange and clearing agent, Those assertions have since been dismissed,” Adams said on X in a post.
Is This Due to US’s Pro-Crypto Regulatory Shift?
Closing the Uniswap inquiry reflects similar trends at other cryptocurrency firms. While working to dismiss its complaint against Coinbase pending commissioner approval, the SEC has also ceased investigations into Robinhood Crypto and NFT platform OpenSea in recent weeks.
These developments coincide with what seems to be a notable change in the SEC’s attitude to crypto control following changes in leadership. Known for his tough “regulation-by- Enforcement” approach against the cryptocurrency sector, former Chairman Gary Gensler resigned in January upon President Donald Trump’s inauguration.
Among the significant reforms Acting Chairman Mark Uyeda has instituted at the agency is the creation of a new Crypto Task Force headed by Commissioner Hester Peirce, a proponent of more transparent crypto policies. Additionally apparently dismissed by the SEC is its dedicated crypto enforcement team.
Impact on UNI Token
Notwithstanding more general market volatility, Uniswap’s governance token UNI/USD modestly increased from $7.87 to $8.28 after the announcement.
Chief legal officer of the DeFi Education Fund Amanda Tuminelli observed that the SEC’s ruling “gives DeFi companies additional comfort to pivot from defending to embracing our right to build decentralized tech.”
The closure removes major legal ambiguity for Uniswap Labs, therefore enabling the firm to concentrate on platform development—including its newly published Uniswap v4.
What’s Next for Uniswap?
Working with Congress and the new leadership of the SEC, Adams voiced hope for clearer regulations catered to DeFi’s special qualities.
“We appreciate that the SEC’s new leadership is closely examining the pending enforcement investigations and litigations across our industry, not just our own, and has recognized that there is a more effective path to protect American consumers,” Uniswap Labs said in a blog post.
The change in regulations seems to fit the larger perspective of digital assets taken under by the Trump government. Reports before to entering office indicated the government might review frozen crypto enforcement cases involving non-fraud activity in line with the conservative policy framework Project 2025, which advised eliminating “regulatory impediments” at the SEC.
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