DeFi
Uniswap Challenges SEC on DeFi Regulation
Uniswap’s official petition to the U.S. Securities and Exchange Commission (SEC) highlights its deep concern over proposed amendments to the Securities Exchange Act of 1934, which it claims would expand the SEC’s regulatory reach beyond its intended scope on DeFi platforms.
The company supports that the SEC amendments could potentially encroach on the limits established by the courts.
Highlighting the changing legal landscape, Uniswap Labs insists that the SEC’s current definition of “exchange” does not adequately encompass the decentralized nature of DeFi protocols.
The company is facing regulatory action after receiving a Wells notice from the SEC in April, alleging Uniswap operation of unregistered securities transactions, both as an exchange and as a broker.
Uniswap Labs counters that its protocol functions as a passive technology facilitating peer-to-peer transactions rather than a traditional exchange.
Additionally, Uniswap Labs is requesting an extended comment period to ensure that any regulatory changes align with the current legal framework and do not inadvertently stifle innovation.
They are concerned that the SEC’s enforcement-focused approach, rather than establishing clear regulatory guidelines, risks creating uncertainty within the DeFi industry. Uniswap Labs remains committed to challenging what it sees as regulatory overreach, positioning itself to defend the DeFi ecosystem in potential legal battles all the way to the Supreme Court if necessary.
