👉👉👉 Uniswap cites Chevron in another urge for SEC to drop bid to rule over DeFi

Uniswap Labs Urges SEC to Drop DeFi Proposal Following Supreme Court Ruling

Uniswap Labs, the developer behind the Uniswap decentralized exchange, has renewed its call for the U.S. Securities and Exchange Commission (SEC) to abandon its proposal to regulate decentralized finance (DeFi). This plea follows a recent landmark Supreme Court decision.

Since April 2023, the SEC has proposed broadening the definition of "exchange" under the Exchange Act of 1934 to include participants in the DeFi sector. Uniswap has been a vocal opponent of this proposal. In a letter dated July 9, Uniswap reinforced its earlier arguments against the SEC’s proposed amendments.

Uniswap's new argument is based on the Chevron decision, which emerged from the Loper Bright Enterprises v. Raimondo case decided by the Supreme Court on June 28. This ruling indicates that courts are no longer required to defer to federal agencies on the interpretation of ambiguous laws.

Uniswap contends that this decision means the SEC’s efforts to amend the definition of "exchange" will likely be a misuse of resources, as the proposal was already anticipated to face judicial challenges. Uniswap argues that if the SEC proceeds with these amendments, a reviewing court will likely find the Commission’s interpretation of the Exchange Act to be an overreach.

Additionally, Uniswap criticizes the proposal’s broad scope, suggesting it lacks clear limits and could result in inconsistent and unclear guidance, requiring ongoing litigation on a case-by-case basis.

Uniswap urges the SEC to abandon the proposed amendments entirely. If the SEC chooses to move forward, Uniswap recommends reopening the comment period to incorporate feedback considering the recent Chevron decision.

In April, the SEC issued a Wells notice to Uniswap, signaling potential enforcement action. Uniswap responded by arguing that the SEC's legal arguments were weak and stated it was prepared to fight the matter in court.

Source - cointelegraph.com