In a blog post on May 20, Uniswap Labs responded strongly to the SEC's Wells Notice, expressing confidence that it will win in a possible lawsuit. The company believes that the SEC's regulatory attempts on DeFi are not only misguided, but also legally untenable. Uniswap Labs firmly believes that its work is in line with historical justice and believes that the SEC should not use public funds to fight them.

In the article, Uniswap Labs criticized the SEC's attempt to expand its jurisdiction over communication technology and digital markets, arguing that its legal arguments were weak and repeatedly refuted in court. The company emphasized that the SEC should support open source technology that improves outdated business and financial systems instead of trying to stifle it through litigation.

Uniswap defends DEX

Uniswap Labs also defended Uniswap DEX, calling it a major market innovation that allows users to trade directly without relying on centralized intermediaries. The protocol operates autonomously, has facilitated $2 trillion in trading volume, has not been hacked, and provides 24/7 global transparent, low-cost and efficient transactions.

In its full response to the Wells notice, Uniswap Labs rejected the SEC’s assertions that the protocol is an unregistered securities exchange and that $UNI tokens constitute investment contracts. The company argued that the ERC-20 token standard it supports is a universal file format for all forms of value, similar to a PDF file. Uniswap Labs added that even if the SEC is correct that some securities transactions occur on its protocol, the protocol is “almost exclusively used” for non-securities transactions. $UNI

The SEC argues that Uniswap is an exchange controlled by Uniswap Labs, whose interface acts as an unregistered broker. But Uniswap Labs argues that the SEC’s position is based on a false assumption that the digital file format is equivalent to a security. The company points out that UNI tokens have been airdropped to thousands of users and there is no expectation of profiting from the performance of the DEX, which means it does not meet the criteria of the Howey test.

Uniswap Confident in Lawsuit

Uniswap Labs Chief Legal Officer Marvin Ammori expressed confidence in the company's position, believing that they have a very strong case and will win if forced to litigate. Amorri claimed that the SEC is trying to change the law and redefine terms such as "exchange." He also mentioned that the court had rejected similar arguments against Coinbase, finding that self-custodial wallets did not meet the requirements of a broker-dealer.

Uniswap Labs has hired lawyers who have won similar cases, including former SEC enforcement chief Andrew Ceresney and former U.S. Deputy Attorney General Don Verrilli. The SEC issued a Wells Notice to Uniswap Labs on April 10, indicating that the SEC Enforcement Division intends to recommend a lawsuit against the company. However, the SEC has not yet filed its expected lawsuits against Uniswap Labs or Consensys and Robinhood, which recently issued Wells Notices.

Conclusion:

As the legal battle lines open, Uniswap Labs has demonstrated its firm opposition to the SEC's regulatory stance and is confident in its legal strategy. The company not only has strong legal arguments, but has also assembled an experienced legal team to prepare for possible litigation. Uniswap Labs' stance highlights the tension between the DeFi space and regulators, as well as the broader discussion about the future of financial technology and market regulation.

This dispute is not only about Uniswap Labs’ legal challenge, but also about the regulatory outlook and freedom of innovation in the DeFi ecosystem. As the SEC’s regulatory framework and market practices continue to evolve, dialogue between DeFi projects, legal experts, and regulators will play a key role in shaping the future of financial technology. The Uniswap Labs case may become a turning point in the regulatory struggle in the DeFi field, and its outcome will have a far-reaching impact on the entire industry. #Uniswap #SEC #DeFi #监管