If you thought the crypto community would stand idly by while Uniswap (UNI-USD) gets put through the SEC’s wringer, think again. Last week’s Wells notice, a formal enforcement action notification issued by the SEC, might as well have been a bat signal.
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Rallying the Troops
Rather than sulking, Uniswap’s bigwig Hayden Adams, the mastermind of crypto’s largest decentralized exchange (DEX), took to X to rally his 280,000 followers, pledging to fight what he sees as the SEC’s overreach.
For the DeFi community, this isn’t just about Uniswap. It’s about setting precedents. Consequently, major players in the industry have leaped to Uniswap’s defense. They’re tired of the SEC’s habit of retrofitting dusty old securities laws to modern, dynamic cryptocurrencies. What’s needed, they argue, is not more enforcement but clearer guidelines that foster innovation instead of suffocating it.
Industry Heavyweights Throw Punches
The backlash has been vocal and fierce. Laura Sanders, from the Blockchain Association, accused the SEC of operating beyond its legal confines. She’s backed by a chorus of industry leaders who view recent actions as part of a broader ‘regulation by enforcement’ pattern, a tactic that many believe is detrimental to the entire sector’s growth and innovation.
Coinbase (NASDAQ: COIN) cited the SEC’s vague directives as a source of unnecessary friction. Marvin Ammori, Chief Legal Officer at Uniswap Labs, echoed this sentiment, arguing that neither the protocol, app, nor wallet meets the definitions of securities exchanges or brokers under current laws.
Additionally, Jake Chervinsky at Variant sees these regulatory moves as an attempt to scare off U.S. crypto innovators. His words serve as a reminder that the SEC’s reach has its limits and that Gensler’s tenure will eventually end, with Congress holding the real power to shape the legal landscape.
Despite the support, Uniswap’s token has taken some big losses. Since April 9, UNI has been down nearly 40%. The crypto industry is not just on defense—it’s on the counterattack, gearing up for a battle that could redefine regulatory frameworks in the U.S. for years to come. Stay tuned because this saga is far from over.
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