Uniswap Labs Replies to SECs Wells Notice, Argues Lack of Regulatory Authority
- According to Uniswap Labs, the SEC lacks the authority to oversee its decentralized protocol.
- The majority of Uniswap Protocol tokens do not qualify as securities under US law.
Uniswap Labs has finally responded to the SECs Wells notice, urging the agency to drop its enforcement action against the firm.
Allegedly operating as an unregistered securities exchange and broker, the corporation has been in violation of securities laws, according to the April notification. According to Uniswap Labs, the SEC lacks the authority to oversee its decentralized protocol based on the way the law is structured at the moment.
Moreover, Uniswap Labs chief legal officer Martin Ammori said that the SEC would need to broaden the definition of an exchange if it wanted to oversee the business. According to Ammoris reasoning, the majority of Uniswap Protocol tokens do not qualify as securities under US law.
Self-governing Protocol
The business claims that many DeFi initiatives have been confused because the SEC has not provided clear definitions of whether digital assets are deemed securities.
The firm stresses that their protocol is decentralized and independent of Uniswap Labs, adding that the protocol is self-governing. In addition, it claims it is immune to liability for violations of securities laws due to its independence.
With a Wells notice, the SEC officially informs people or businesses that they intend to suggest enforcement action against them. A Wells submission is an invitation for the receiver to explain in writing why the proposed action should not be approved in response to this notice.
Since 2021, an SEC investigation has focused on Uniswap Labs, the company primarily responsible for creating Uniswap. The DEX has delisted some tokens in the past as a result of mounting regulatory pressure.
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Text source: TheNewsCrypto – Blockchain & Cryptocurrency News M
