The United States Securities and Exchange Commission (SEC) has officially closed its investigation into Uniswap Labs, opting to take no further action according to an update issued by Uniswap.
This decision marks the end of a multi-year probe that began with a Wells Notice issued to the company in April of 2024 for allegedly operating an unregistered securities exchange and potentially violating federal securities laws by supporting tokens deemed as investment contracts.
Uniswap Labs has hailed the SEC’s decision as a victory not just for themselves but for the broader DeFi ecosystem.
Notably, the company has consistently maintained that its operations comply fully with existing laws, emphasizing that its technology fosters transparent, efficient, and accessible markets.
Does this mark the turning point for DeFi regulation in the US?
The Uniswap case closure comes amid what appears to be a broader reconsideration of enforcement actions under the SEC’s new leadership, following a tenure marked by aggressive lawsuits championed by former Chair Gary Gensler.
Earlier this month, the SEC revealed plans to drop its lawsuit against Coinbase, another major player in the crypto space and on February 24, the SEC also closed investigations into Robinhood without recommending any charges.
These moves suggest a possible thaw in the agency’s once-hardline stance toward the cryptocurrency industry.
Uniswap Labs noted that the SEC’s new leadership seems to be taking a closer look at pending investigations and litigations, a process that could pave the way for a more balanced approach to oversight.
For Uniswap Labs, the end of the investigation lifts a cloud of uncertainty that had loomed since the Wells Notice was issued.
At the time, the SEC had argued that Uniswap’s facilitation of certain token trades constituted unregistered securities activities, a claim the company fiercely contested.
In the update that it issued, Uniswap Labs has expressed relief and optimism, framing the outcome as validation of its mission.
They underscored how their platform empowers users to trade instantly and securely without relinquishing control of their assets to intermediaries.
The company also welcomed the SEC’s apparent willingness to rethink its approach, suggesting that regulators may now be open to finding more effective ways to protect consumers while fostering innovation.
According to Uniswap Labs, the SEC’s decision strengthens the case for America to lead in shaping the future of decentralized finance.
With its technology already powering billions in trading volume and liquidity, Uniswap has become a symbol of how DeFi can reshape financial systems for the better.
By reducing reliance on traditional financial gatekeepers, lowering transaction costs, and enhancing price transparency, the decentralized exchange positions itself as a cornerstone of a decentralized financial future.
Uniswap (UNI) price reaction
Following the news of the SEC dropping the case, attention naturally turned to Uniswap’s native token, UNI, which powers governance and incentives on the platform.
Following the news, UNI’s price saw a modest bounce back following today’s crypto market bloodbath to hit an intraday high of $8.37 although it had pulled back to around $8.08 at press time.
The token remains 2.4% down from its price at the same time the previous day.
The token has faced broader market pressures, with a 7-day drop of 11.9% and a 30-day decline of 32.5%.
As if that is not all, it has shed 24.1% of its value over the past year, though it remains significantly above its all-time low of $1.03 from September 2020.
While the case closure hasn’t yet sparked an immediate price surge, the long-term implications of reduced regulatory risk could bolster confidence among investors and users of the Uniswap ecosystem.
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