The price of Uniswap’s UNI token has decreased by 17 percent after the US securities regulators issued a notice of legal action, causing it to dip down to $9.27 – its lowest point since late February.
More recently, the SEC announced an investigation into our exchange, which may have contributed to the recent drop in performance.
Based on information from CoinMarketCap, UNI token’s market capitalization decreased by 17% within hours of the news being released, and its current value is at $5.54 million.
Hayden Adams, the founder of Uniswap Labs, voiced his disappointment and preparedness for a potential court fight against the SEC’s actions, which he believes could drag on for an extended period, possibly even reaching the US Supreme Court.
Uniswap argues that UNI tokens do not classify as securities, which means they are not subject to the rules of a securities exchange or brokerage. This perspective was expressed in a recent blog post, although no specific mention was made of any received Wells notice in the discussion.
Bill Hughes, Consensys’ senior legal counsel and head of regulatory affairs, explained that in order for the Securities and Exchange Commission (SEC) to formally bring a lawsuit, the approval of all five SEC commissioners is required.
“It’s common knowledge that the Chair intends to file a lawsuit against them, but not all commissioners share this view. Two are in favor, while two are opposed. Regardless, a lawsuit has not been initiated yet.”
Calm down, team. I’m noticing some unease and concern among you all, given the recent news from Uniswap. Here are a few points:
1) Uniswap has been informed that the Securities and Exchange Commission (SEC) staff intends to propose to the commission that they approve…
— Bill Hughes : wchughes.eth 🦊 (@BillHughesDC) April 10, 2024
Additionally, he encouraged the community to stay composed, reassuring them that it’s unlikely the SEC would go after individual UNI token holders or platform users directly.
The ex-chief of the SEC’s internet enforcement unit, John Reed Stark, expressed concern over Uniswap’s forceful response to receiving a Wells notice, reminding us that defensive tactics against the SEC usually don’t yield positive results.
A SEC attorney would advise against reacting to a Wells notice with hostile language or insults, as this approach is perceived as weak, risky, and unlikely to be successful.
In simpler terms, this legal dispute is part of a larger issue between the Securities and Exchange Commission (SEC) and the cryptocurrency community. The crypto industry argues that the SEC is overstepping its boundaries with excessive regulations and unclear guidelines. However, the SEC and its advocates, like Senator Elizabeth Warren, counter that the industry wants to circumvent existing securities laws.
In this situation, Coinbase and Ripple‘s notable lawsuits with the SEC, which center around the SEC’s authority over digital assets, have influenced the current context. The results have been varied, with recent decisions siding with the SEC, but Uniswap’s defense is still unclear due to the unique nature of decentralized finance (defi) and its previous success in a class-action lawsuit.
A debate arises as defi, specifically the platform defi such as Uniswap, experiences substantial expansion. With over $2 trillion worth of transactions processed and traditional financial industries taking notice, Uniswap generates intrigue.
In a recent court case between the SEC and Coinbase, a judgment was made that emphasized the unique regulatory challenges posed by decentralized services. This ruling could strengthen Uniswap’s argument against concerns regarding its control over specific platform elements.
Read More
Sorry. No data so far.
2024-04-11 15:03