SEC plans to file a lawsuit against Uniswap Labs, what are the chances of winning? Blind guess!
From the SEC's continued regulatory enforcement of the most compliant and law-abiding market participants (Coinbase, Uniswap), and its unwillingness to provide a clear regulatory path for 6 years, this action is more of a political appeal (combined with the recent congressional lawmakers' crusade against DeFi).
Uniswap Labs, a US-based company, created the Uniswap Protocol, bringing unprecedented innovation to the market. These innovations are based on open source code, allowing users to directly participate in market transactions without any middlemen under the premise of self-custody. Uniswap Labs believes that its products are not only legal, but also transformative. They establish transparent and verifiable markets with fewer gatekeepers, thereby empowering the global public to participate in the global economy cheaply and easily.
If the SEC continues to protect the opaque system of traditional finance and attack innovative, open and transparent technologies that can create opportunities and reduce costs for Americans, then Uniswap Labs will have to fight against US government agencies to protect innovation and economic freedom.
No matter what the SEC decides to do, the law has clear provisions on the following points:
1. SEC regulatory enforcement has no congressional authorization - the SEC only has jurisdiction over "securities"
The SEC chairman previously made it clear to Congress that whether crypto assets can be determined to be "securities" requires congressional legislation to confirm.
And in the Risley vs. Uniswap Labs case, the judge stated that transactions on Uniswap are not subject to securities law (neutrality does not require permission), and clearly emphasized: "The determination of whether it is a security or not is best resolved by Congress."
In addition, in the SEC vs. Ripple case, the judge made it clear that secondary market transactions of crypto assets generally do not constitute investment contracts.
This shows that there is no "securities" problem in secondary market transactions on Uniswap.
