Uniswap, a leading decentralized exchange, has raised its trading fee from 0.15% to 0.25% in a strategic move to strengthen its legal fund amid potential challenges from the U.S. Securities and Exchange Commission (SEC). The fee adjustment affects most transactions, except certain stablecoin and Wrapped Ether (WETH) transactions.

The fee increase impacts user interaction with Uniswap, but exemptions for specific swaps have been retained to lessen the impact. Alternative interfaces are available for those seeking to avoid the increased fees, though these may also incur costs.

The fee hike follows a Wells notice received by Uniswap, indicating potential SEC enforcement actions. The move is part of a broader strategy to bolster its financial position and cover potential legal expenses. Analysts believe this could support Uniswap Labs in developing new products and maintaining its DeFi sector leadership.

The Uniswap community has been actively involved in governance decisions, particularly regarding the fee structure. A proposal to redistribute fees to UNI token holders was rejected, reflecting the community's preference for current operational strategies.

The fee adjustment and regulatory scrutiny have led to a turbulent market response, with UNI token prices dropping over 35% in the past week. As Uniswap adapts to regulatory demands and community expectations, the market's reaction and the platform's ability to innovate amidst these challenges will be key in maintaining its DeFi leadership position.