{"id":166381,"date":"2024-05-22T11:39:59","date_gmt":"2024-05-22T11:39:59","guid":{"rendered":"https:\/\/crypto-economy.com\/?p=166381"},"modified":"2024-05-22T11:40:03","modified_gmt":"2024-05-22T11:40:03","slug":"uniswap-challenges-sec-comprehensive-response-to-wells-notice","status":"publish","type":"post","link":"https:\/\/crypto-economy.com\/uniswap-challenges-sec-comprehensive-response-to-wells-notice\/","title":{"rendered":"Uniswap Challenges SEC: Comprehensive Response to Wells Notice"},"content":{"rendered":"<p style=\"text-align: justify\"><span style=\"font-weight: 400\">TL;DR<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;text-align: justify\"><b>Uniswap Labs has responded to the SEC&#8217;s Wells notice<\/b><span style=\"font-weight: 400\">, arguing that the regulator&#8217;s legal foundations are &#8220;weak&#8221; and do not justify a lawsuit.<\/span><span style=\"font-weight: 400\">\n<p><\/span><\/li>\n<li style=\"font-weight: 400;text-align: justify\"><span style=\"font-weight: 400\">65%<\/span><b> of your transactions<\/b><span style=\"font-weight: 400\"> involve assets that the SEC does not consider securities, and 75%<\/span><b> of its users<\/b><span style=\"font-weight: 400\">\u00a0 are outside the US.<\/span><span style=\"font-weight: 400\">\n<p><\/span><\/li>\n<li style=\"text-align: justify\"><span style=\"font-weight: 400\">The SEC must <\/span><b>stop wasting public resources<\/b><span style=\"font-weight: 400\"><span style=\"font-weight: 400\"><span style=\"font-weight: 400\"> in unfounded cases.<\/span><\/span><\/span><\/li>\n<\/ul>\n<hr \/>\n<p style=\"text-align: justify\"><a href=\"https:\/\/crypto-economy.com\/uniswap\/\" target=\"_blank\" rel=\"noopener\"><b>Uniswap<\/b><\/a><b> Labs has responded forcefully to the recent<\/b><a href=\"https:\/\/blog.uniswap.org\/wells-notice-response.pdf\" target=\"_blank\" rel=\"noopener\"> <b>notification<\/b><\/a> <b>of Wells of the SEC, in an effort to dismiss a possible lawsuit against him.<\/b><span style=\"font-weight: 400\"> In a 40-page document, the decentralized finance (DeFi) platform maintains that the regulator&#8217;s legal arguments are &#8220;weak&#8221; and do not justify a court case, urging the agency to drop the investigation.<\/span><!--more--><\/p>\n<p style=\"text-align: justify\"><span style=\"font-weight: 400\">As with so many other platforms, the SEC is questioning the exchange&#8217;s operations, suggesting that the platform could be violating US securities laws. According to the regulator, the DeFi protocol<\/span><b> It would function as an unregistered stock exchange, with the platform interface acting as an unregistered securities broker-dealer, and the UNI token being classified as an investment contract.<\/b><span style=\"font-weight: 400\"> However, Uniswap has staunchly defended itself and remains stoic, questioning the SEC&#8217;s vague interpretation of the current regulations and their applicability to the DeFi industry.<\/span><\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">Today we responded to the SEC\u2019s Wells notice<\/p>\n<p>We believe DeFi is revolutionary and we\u2019re going to fight to protect it<\/p>\n<p>Summary of our response and the full 40 page document here:<a href=\"https:\/\/t.co\/u4fEWHVMVu\" target=\"_blank\">https:\/\/t.co\/u4fEWHVMVu<\/a><\/p>\n<p>&mdash; Uniswap Labs \ud83e\udd84 (@Uniswap) <a href=\"https:\/\/twitter.com\/Uniswap\/status\/1792973632588677509?ref_src=twsrc%5Etfw\" target=\"_blank\" rel=\"noopener\">May 21, 2024<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p style=\"text-align: justify\"><span style=\"font-weight: 400\">The SEC is stretching the legal definitions of securities, exchanges, and contracts to unreasonable levels to incriminate Uniswap. The platform maintains that<\/span><b> the accusation that any value stored digitally should be considered a value is untenable<\/b><span style=\"font-weight: 400\">. In its extensive response, the protocol highlights that its activities are aligned with recent judicial precedents that contradict the regulator&#8217;s position. Furthermore, they argue that <\/span><b>the SEC should not waste taxpayer-funded resources on such an unwarranted case.<\/b><\/p>\n<p><img fetchpriority=\"high\" decoding=\"async\" class=\"alignnone size-full wp-image-81745\" src=\"https:\/\/crypto-economy.com\/es\/\/wp-content\/uploads\/sites\/4\/2024\/04\/unii.jpg\" alt=\"uniswap post\" width=\"825\" height=\"300\" \/><\/p>\n<h2>Uniswap Is Clear, the SEC Lacks Arguments<\/h2>\n<p style=\"text-align: justify\"><span style=\"font-weight: 400\">Furthermore, they emphasized that <\/span><b>most of its trading volume does not involve securities<\/b><span style=\"font-weight: 400\">, even under the SEC&#8217;s own criteria. Approximately <\/span><b>65% of its transactions involve assets that the SEC has recognized are not securities<\/b><span style=\"font-weight: 400\">, such as Ether, wrapped Bitcoin and stablecoins. In theory, and following a line of consistency, this should destroy any argument from the regulatory body.<\/span><\/p>\n<p style=\"text-align: justify\"><span style=\"font-weight: 400\">Another axis in the defense of Uniswap is that<\/span><b> most of its users are not under the jurisdiction of the SEC<\/b><span style=\"font-weight: 400\">. The company estimates that around 75% of users <\/span><b>are located outside the United States<\/b><span style=\"font-weight: 400\">, which limits the applicability of US securities laws. The company maintains that, although some securities-like transactions are carried out on its platform,<\/span><b>It was not specifically designed for that purpose, and therefore should not be regulated as such.<\/b><\/p>\n<p><img decoding=\"async\" class=\"alignnone size-full wp-image-84381\" src=\"https:\/\/crypto-economy.com\/es\/\/wp-content\/uploads\/sites\/4\/2024\/05\/uni-post-1.png\" alt=\"uniswap post\" width=\"825\" height=\"300\" \/><\/p>\n<p style=\"text-align: justify\"><span style=\"font-weight: 400\">UNI&#8217;s forceful response comes after the intensification of regulatory persecution. The SEC has been sending Wells notices left and right, filing lawsuits and negotiating settlements with various crypto companies. <\/span><b>Among the entities under the regulator&#8217;s radar are ShapeShift, TradeStation, ConsenSys and the Foundation<\/b><a href=\"https:\/\/crypto-economy.com\/what-is-ethereum\/\" target=\"_blank\" rel=\"noopener\"> <b>Ethereum<\/b><\/a><b>.<\/b><\/p>\n<p style=\"text-align: justify\"><span style=\"font-weight: 400\">UNI is confident that its work is on the right side of history and is confident that <\/span><b>a fair evaluation will demonstrate the lack of merit in the SEC&#8217;s accusations<\/b><span style=\"font-weight: 400\">. The agency should reevaluate its approach and not allocate more resources to cases that lack sufficient merit.<\/span><\/p>\n<p style=\"text-align: justify\">\n","protected":false},"excerpt":{"rendered":"<p>TL;DR Uniswap Labs has responded to the SEC&#8217;s Wells notice, arguing that the regulator&#8217;s legal foundations are &#8220;weak&#8221; and do not justify a lawsuit. 65% of your transactions involve assets that the SEC does not consider securities, and 75% of its users\u00a0 are outside the US. The SEC must stop wasting public resources in unfounded &#8230; <\/p>\n<p class=\"read-more-container\"><a title=\"Uniswap Challenges SEC: Comprehensive Response to Wells Notice\" class=\"read-more button\" href=\"https:\/\/crypto-economy.com\/uniswap-challenges-sec-comprehensive-response-to-wells-notice\/#more-166381\" aria-label=\"More on Uniswap Challenges SEC: Comprehensive Response to Wells Notice\">Read more<\/a><\/p>\n","protected":false},"author":34,"featured_media":166383,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[102,84,74],"tags":[4620,5287,4679,4816,5344],"_links":{"self":[{"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/posts\/166381"}],"collection":[{"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/users\/34"}],"replies":[{"embeddable":true,"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/comments?post=166381"}],"version-history":[{"count":3,"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/posts\/166381\/revisions"}],"predecessor-version":[{"id":166386,"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/posts\/166381\/revisions\/166386"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/media\/166383"}],"wp:attachment":[{"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/media?parent=166381"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/categories?post=166381"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/tags?post=166381"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}