Uniswap receives SEC Wells notice and faces prosecution! UNI fell 15% after hearing the news

Uniswap, the leading decentralized exchange, reported major bad news early this morning (11th). Founder Hayden Adams posted on X that he had received a Wells notice from the SEC. (Wells Notice), facing possible litigation.

Today, @Uniswap Labs received a Wells Notice from the Securities and Exchange Commission (SEC).

I'm not surprised. Just feel annoyed, disappointed, and ready to fight.

I am confident that the products we offer are legal and that our work is on the right side of history. But it’s clear that instead of working to create clear, informed rules, the SEC has chosen to attack companies like Uniswap and Coinbase that have long behaved themselves well. At the same time, bad actors like FTX are allowed to get away with it.

When I first started building Uniswap, the goal was not to reimagine finance.

It is an experiment in an extremely decentralized, fully automated on-chain market. I don't know if it will be successful or if anyone will use it.

Fast forward to today, the Uniswap protocol has processed over $2 trillion in transaction volume. Thousands of teams and developers have forked our code or built on it. We build new financial infrastructure that is transparent, fair, secure and easy to use, driving the growth of the entire industry.

@Uniswap team has done all this in its office in New York City, USA.

People often ask me why we stay in the United States, and my answer is simple: I believe blockchain is an extremely powerful technology. Just like the web, it's here to stay. So someone needs to solve this problem, and that person could be us.

And, when you build technology that improves people’s lives – you don’t have to hide.

@SEC’s mission is to “protect investors, maintain fair, orderly and efficient markets, and promote capital formation.” This is a noble mission. I would argue that @Uniswap is doing a much better job than the SEC on this today.

Yes, I am frustrated that the SEC seems more concerned with protecting opaque systems than protecting consumers. And we're going to have to fight U.S. government agencies to protect our companies and our industry.

This battle will continue for years, possibly all the way to the Supreme Court, with the future of financial technology and our industry at risk. If we stick together, we can win.

I think freedom is worth fighting for. I think DeFi is worth fighting for.

Of course, we will not stop moving forward. Stay tuned.

UNI dives 15%

As soon as the news came to light, the Uniswap platform currency also dropped from 11.2 US dollars. At the time of writing, the lowest price reached 9.495 US dollars, a sharp drop of nearly 15% in six hours.

What is the Wells Notice?

A Wells Notice usually refers to a notice issued to an individual or business after the SEC investigation has concluded, indicating that the SEC believes they may have violated securities laws. After submitting the notice, the SEC has six months to decide whether to file a complaint and take enforcement actions. Companies that receive notices from the SEC also have the right to respond.

Just last March, Coinbase, the largest cryptocurrency exchange in the United States, also received a "Wells Notice" from the U.S. Securities and Exchange Commission (SEC), causing Coinbase's stock price to plummet by more than 15% after the market closed. .

Faced with the SEC’s gavel approaching, Coinbase stated in a statement at the time: The SEC’s regulatory stance is unclear, leaving cryptocurrency companies with no way of knowing how to move forward. The sudden intimidation of enforcement is completely meaningless and it filed a lawsuit in federal court. , asking the SEC to provide a clear response to the company’s July 2022 petition asking the SEC to use its formal rulemaking provisions to provide guidance to the crypto industry.

At the time, Paul Grewal, Coinbase’s legal director, said that the company provided multiple registration proposals to the SEC within a few months, but all proposals were ultimately rejected by the SEC, and finally a Wells notice was issued directly.

Regardless of whether the SEC will eventually sue Uniswap, this move will indeed cast a shadow on the development of the DeFi industry.

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