DeFi
DeFi in Danger? Uniswap Labs Opposes SEC Regulatory Proposals
- Uniswap Labs Opposes SEC Rule Change to Expand Definition of “Exchange”
- UNI has been fluctuating between $6 and $12 since April
Uniswap Labs [UNI] expressed reservations about proposed amendments by the US SEC, which could broaden the definition of “exchange” and the agency’s mandate on DeFi (decentralized finance).
To shed light on the SEC’s decision, the general counsel of the company behind Uniswap, Katherin Minarik, said,
“Today, Uniswap Labs urged the SEC not to proceed with its proposed rulemaking that would significantly and inappropriately expand the definition of an “exchange” to include DeFi and more.”
The agency sought to expand the definition of an exchange, as defined by the Exchange Act of 1934. Apparently, the SEC sought to cover DeFi under this expansion, per its proposed amendments. issued in April 2023.
This means that, if passed, even DeFi would fall under the agency’s jurisdiction. According to Uniswap Labs, the SEC’s expansion of the term “exchange” is unnecessary since the agency lacks the authority to make such broad interpretations.
“The SEC and the industry have better ways to spend their resources than engaging them in litigation over an illegal rule.”
Finally, Uniswap Labs also claims that such a move would allow the SEC to continue to regulate through enforcement, which has disrupted the industry.
UNI Price Evolution
Source: UNI/USDT, TradingView
Since receiving a Wells Notice from the SEC in April 2024, the altcoin has lost over 40% of its value. It has fallen from around $12 to just over $6, with the key demand zone marked in cyan.
Greater regulatory clarity in the US allowed the stock to rebound from the demand zone and regain the $12 mark. However, negative sentiment pushed it back into the demand zone in July.
Hence the question: will UNI retest the supply zone (red) near $12?
The Relative Strength Index (RSI) has improved on the charts. While this could be seen as a sign of increasing buying pressure, the indicator appears to be below the neutral level. This could further delay the recovery in the short term.
In addition, recent whales sales at a loss This could further hamper UNI’s recovery and delay the bulls’ march towards the $12 mark.