With the specter of attacks on the DeFi ecosystem looming for a while, the SEC issued the Wells Notice against Uniswap (UNI). The founder of the protocol, Hayden Adams, as well as Uniswap Labs, responded publicly. What do you think?
SEC Issues Notice of Wells v. Uniswap (UNI)
Wednesday night, the famous decentralized finance protocol (DeFi) Unsiwap (UNI) informed its community that it received the Wells notification from the Securities and Exchange Commission (SEC). While this type of warning does not constitute legal action as such, it often precedes a complaint, as was the case with Coinbase last year.
At X, Hayden Adams, founder of the Decentralized Exchange (DEX), spoke at length on the subject, explaining that “it is notnot surprised, just annoyed, disappointed and ready to fight»:
I am confident that the products we offer are legal and that our work is on the right side of history. But it’s been clear for some time now that instead of working to create clear and informed rules, the SEC has chosen to focus on attacking longtime good players like Uniswap and Coinbase. All this while firing bad actors like FTX.
👉 What is security?
Further, the person also says “frustrated that the SEC seems more concerned with protecting opaque systems than protecting consumers“. He estimates that the coming struggle will last for years, and that he could turn to the Supreme Court if necessary.
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Uniswap responds publicly
Parallel to the words of its founder, Uniswap also provided a public response, providing counterarguments to the SEC’s endless criticism directed at the cryptocurrency ecosystem:
Despite the SEC’s rhetoric that “most” tokens are securities, the reality is that tokens are a digital file format, such as a PDF or spreadsheet, and can store many types of value. They are not securities, just as every sheet of paper is not a stock certificate.
Although some of the tokens exchanged on the DEX may actually represent financial securities, Uniswap recalls the court decision in the case of Ripple (XRP).according to “secondary market transactions in digital assets generally do not constitute investment contracts“.
👉 To go further — Find our Uniswap (UNI) guide
As for the UNI token, Uniswap says there are no contracts or promises between Uniswap Labs and asset holderstherefore, the latter cannot be considered a certainty.
Between the time of the announcement and this writing, UNI has lost more than 16%, now trading at $9.35.
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Source: Uniswap, X
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I timidly discovered the world of blockchain at the end of 2018 in my quest for financial freedom. At first I invested moderately, but it was not until two years later that I bet everything on the movement that was then taking shape. I will dedicate 2021 to better training to gain more knowledge and seriousness. As I often say: I still have a billion things to learn. And what I know, I want to share with you.
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