Uniswap responds to Wells Notice and invites the SEC to reconsider possible lawsuit – DiarioBitcoin

Uniswap’s legal team confirms that they will fight the SEC if that is the case, and they do not doubt that they will win the litigation. Still, they invite the agency to reconsider its position and think about the effects of its actions in the crypto space.

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• Uniswap responded to Wells Notice sent by the SEC
• They assure that Uniswap does not meet the criteria to be regulated by the agency
• They reiterate that they will fight the legal battle if necessary, and they do not doubt that they will win
• However, they invite SEC to reconsider your position
• This occurs amid expectations for the arrival of ETFs Ethereum cash

Uniswap Labsthe entity responsible for supporting the protocol DeFi Uniswap, asked the Securities and Exchange Commission (SEC) to dismiss the allegations made against it in a legal notice sent in early April.

The team of Uniswap Labs filed a response to the SEC’s Wells Notice last month, asserting that the protocol Uniswap “does not meet the definition of an exchange, and is therefore not subject to regulation” managed by the agency.

In this regard, the legal director of Uniswap, Martin Ammori, rejected the platform’s listing as an unregistered securities exchangealleging that both the platform’s interface and wallet also do not meet the definition used for unauthorized brokers.

Uniswap “It is general purpose, and most of its volume is obviously non-securities like Ethereum, Bitcoin, and stablecoins“Ammori stated, adding that the SEC is “trying to redefine about half a dozen words in their own regulations” to try to take action against the platform, which will not work since it would exceed its authority.

Uniswap plans to fight the legal battle

On April 10, the team Uniswap confirmed that they received a Wells Notice issued by the SEC, extent to which the entity warns about possible violations of securities laws through the products and/or services they offer to the market.

In this regard, the CEO of Uniswap, Hayden Adams published a series of messages on his X account where he expressed his dissatisfaction with the actions of the SEC, claiming that They will fight the legal battle if necessary to reach the end of this matter.

In addition to this, the legal team of Uniswap He developed some legal aspects that would clearly tip the balance in his favor if the dispute reached court:

• The agency’s case against Ripple made it clear that transactions in secondary digital asset markets do not violate current laws, which happens with Uniswap.
• The protocol or wallet Uniswap They do not meet the applicable legal definitions for securities exchanges or brokers, so the SEC has no jurisdiction to accuse them of operating as such entities.
• UNI, The cryptocurrency issued by the protocol also does not qualify as a security or an investment contract because it does not meet the definitions contemplated in federal laws.

Returning to the statement, Ammori reiterated that they are ready for a legal battle if necessary, and expressed confidence in the possibility of a victory claiming that the company is not violating any laws. He also invited the SEC to reconsider its allegations and think more about residents, as the approach is only creating fear and pushing the industry to look for alternative destinations.

For many analysts, the SEC’s case against Uniswap It could well be framed in the conflicts that the agency faces against Ethereum, cryptocurrency that is trying to qualify as a security and for which it has several ongoing investigations.

However, facing the official verdicts for a first batch of applications for exchange-traded funds (ETFs) Ethereum In cash, in the last 24 hours there seems to be a change in the SEC’s perspective regarding these products that were already considered disapproved. This has revitalized the enthusiasm of the community, since, if these presentations are approved, it could be interpreted as a space won for the crypto community.

Yesterday the analysts of Bloomberg, James Seyffart and Eric Balchunas radically changed their minds regarding ETFs Ethereum in cash, and after thinking that this first batch of applications had a greater probability of being rejected, they now place the verdict for these products at a 75% probability of success.

The SEC asked applicants to submit certain forms related to ongoing applications as soon as possible, which is already Grayscale and Fidelity they did today. Several analysts consider that this may be due to political interests, precisely so that the US government conveys a much friendlier image towards the sector in light of the upcoming presidential elections.

In any case, we just have to wait and see what the SEC’s verdict will be for this first batch of ETF applications. Ethereum in cash, which will reach their final deadline in the coming days.

Article by Angel Di Matteo / DailyBitcoin

Picture of DailyBitcoin, under free use license

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