Decentralized on-chain marketplace Uniswap has been served with a Wells Notice by the U.S. Securities and Exchange Commission (SEC), and the cryptocurrency community on X (formerly Twitter) isn't taking the news well.
Uniswap CEO Hayden Adams made the announcement on X late Wednesday, noting that while he wasn't surprised, he was "annoyed, disappointed, and ready to fight." He went on to note that he was "confident that the products we offer are legal and that our work is on the right side of history."
Today @Uniswap Labs received a Wells notice from the SEC.
— hayden.eth 🦄 (@haydenzadams) April 10, 2024
I’m not surprised. Just 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 been clear for a while that rather than…
In an official statement on the matter, Uniswap said that the Wells Notice – a letter that states the SEC is planning to initiate an enforcement action against a company – will not affect its products at this point. "We can only conclude that this is the latest political effort to target even the best actors building technology on blockchains," the decentralized finance (DeFi) apps network said in a blog post titled "Fighting for DeFi."
Crypto users and enthusiasts on X immediately rallied below Adams' and Uniswap's posts regarding the Wells Notice.
One user accused the SEC of "playing games," adding that the crypto space will "always support the right side of DeFi." Another user said the regulator wasn't established to "protect" the financial system or consumers, but instead, it was built up "to make sure they control us."
Several entities in the DeFi space have since come to Uniswap's defense, including decentralized derivatives exchange DexToro and the BEANZ non-fungible token (NFT) team.
We support Uniswap for this fight🫡🦄
— DexToro (@DexToro_com) April 11, 2024
We believe Uniswap platform is not a security.
— BEANZ (@BEANZOfficial) April 11, 2024
The team behind the Solana protocol's unofficial mascot, Solama, said they stand with Uniswap "as they navigate through this regulatory war."
Innovation thrives when pioneers forge ahead, not when they're held back.@Uniswap is paving the future of finance, and facing challenges head-on is part of the journey. 🚀
— SOLAMA | Solana Chain 🦙 (@SolamaSPL) April 11, 2024
$SOLAMA stands with Uniswap as they navigate through this regulatory war. 🦙🤝🦄 pic.twitter.com/AZIVFxde8w
Web3 gaming figure Ayu Charlotte and smart contract developer Param.eth also expressed solidarity with the DeFi firm.
Other crypto enthusiasts had similar things to say about the SEC and its hostile treatment of the crypto sector.
Glad you will fight SEC , its ridiculous that they only gave a negative impact on Crypto, i can't recall a good single thing they did for us.
— Roi (@RoiResell) April 10, 2024
They just want to take money from the project, thats it.
— LuxDiei (@luxdiei) April 10, 2024
Uniswap is just the latest crypto firm to have been targeted by the SEC as part of its campaign to clamp down on companies and platforms it claims have been selling unregistered securities and are thus in violation of securities laws.
Among its biggest targets, aside from Uniswap, are crypto exchange giant Coinbase, which it said engaged in unregistered sales of securities, and Ripple Labs, the software company behind the Ripple payment protocol and exchange network.
Just recently, a judge rejected Coinbase's bid to dismiss the SEC's complaint, pushing forward the regulator's case to proceed to trial. Ripple, on the other hand, may face up to $2 billion in fines and penalties in a years-long legal battle initiated by the regulator.
