Uniswap Labs, the developer of the decentralized exchange of the same name, has responded to the United States Securities and Exchange Commission (SEC) suggesting possible enforcement action by sending the company Wells notice.

In a blog post on May 21, Uniswap claimed that the SEC used “weak” legal arguments in sending the Wells notice to the exchange and stated that it was ready to “fight” this issue in court if necessary. The company noted that its lawyers have successfully represented firms including Grayscale and Ripple before the financial regulator. General Counsel Marvin Ammori argued that the SEC's case was "weak and misguided" based on its treatment of all tokens as securities under its jurisdiction.

The company's response comes as the U.S. House of Representatives prepares to vote on the Financial Innovation and Technology Act for the 21st Century, a bill that could change how the SEC and the Commodity Futures Trading Commission (CFTC) regulate cryptocurrencies. Uniswap hinted that if the law goes into effect, the SEC's lawsuit could be a dead giveaway and the CFTC could be given the authority to bring certain enforcement actions.

It is unclear whether the SEC's enforcement action is related to reports that the regulator is considering labeling Ether (ETH) as a security. Uniswap provides automatic token exchanges on the Ethereum blockchain. The SEC plans to approve or deny applications for spot Ether exchange-traded funds to list and trade on U.S. exchanges by May 23.

We welcome your comments: What impact might this action by the SEC have on the regulation of cryptocurrencies?