[NEWS] SEC issues enforcement warning to major DEX Uniswap

It has been revealed that the SEC (U.S. Securities and Exchange Commission) has issued a Wells Notice to Uniswap Labs, which operates one of the world's largest cryptocurrency DEXs. Uniswap announced this in a blog post.

The SEC has not revealed the reason for the warning to Uniswap. In a blog post, Uniswap strongly criticized the Wells Notice, saying, "Given the SEC's lawsuit against major cryptocurrency exchange Coinbase and others, and its reluctance to provide clarity and a path to registration for those operating legally in the U.S., we can only conclude that this is a political effort that targets even great companies building technology on the blockchain."

Uniswap is showing its intention to fight the Wells Notice to the end. It says it will continue to operate its DEX as before. It also plans to launch new products.

In response to the SEC's claim that "most tokens are securities," Uniswap said, "Tokens can store many different types of value. Just as not all paper is a stock certificate, tokens are not inherently securities." They also argue that tokens traded on secondary markets like Uniswap do not require investment contracts.

Currently, the SEC is moving to view many tokens as securities, but Uniswap said, "We are refusing to create a path for companies to register them." "We believe that the product we offer is not only legitimate, but transformative," they continued.

Uniswap is a DeFi service launched by founder and CEO Hayden Adams. It provides high liquidity as a trading platform without a central administrator. To date, it has processed more than $2 trillion (approximately 310 trillion yen) in transactions.

The price of Uniswap's UNI token fell by more than 10% on the day of this announcement. At the time of writing, the price has fallen by about 35% from the previous day due to the overall decline in the cryptocurrency (virtual currency) market.

Reference: Blog
Image: Shutterstock

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