The US Securities and Trade Fee (SEC) has drastically shifted its stance on crypto since earlier Chair Gary Gensler give up. SEC has revealed that its investigation into Uniswap Labs has been dropped with no disciplinary motion.
On 25 February 2025, Uniswap Labs celebrated closing of the investigation with a publish on X. “This is a huge win for DeFi and reaffirms what we’ve always known – that the technology we build is on the right side of the law, and our work is on the right side of history,” stated Uniswap Labs.
However Uniswap isn’t the one firm that witnessed SEC’s kindness. The heated lawsuit between Ripple Labs and the SEC has immediately disappeared from the SEC web site.
The Ripple case that began in December 2020 has no remaining references on the SEC web site. This has led the crypto group to imagine that after the Trump Administration and the brand new SEC management got here into impact, many crypto-related lawsuits shall be dropped.
In April, the SEC issued a Wells discover claiming that Uniswap Labs operated as an unregistered dealer, operated an trade, and issued an unregistered safety
As of yesterday, that investigation has formally been closed, and the SEC is taking no enforcement motion
It is a…
— Uniswap Labs (@Uniswap) February 25, 2025
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Gensler And SEC Sued Uniswap
On April 10 2024, the SEC served Uniswap Labs with a Wells Notice, a precursor to a proper enforcement motion.
“They went after us despite having no clear legal basis, as part of a strategy of arbitrary enforcement to try to force DeFi into a regulatory framework that doesn’t fit—all while refusing to provide clear rules or a path to compliance,” stated Hayden Adams, inventor of Uniswap protocol.
In accordance with Adams, the investigation took over three years, “forcing us to waste incredible amounts of time and millions of dollars.”
“It also had a personal impact — federal investigations are violating and stressful to the point where there is a saying among lawyers that “the investigation IS the punishment.” That shouldn’t be the value of innovation within the US,” stated Adams.
Commenting on the win, Uniswap CLO, Katherine Minarik stated, “It’s the right result to have our SEC investigation closed without any enforcement action. But there is no way to unwind the enormous (and unnecessary!) costs of so many other investigations and litigations in crypto.”
Criticising the SEC, Minarik commented on the misplaced time, “The good products to improve financial access for all that we couldn’t build. The good jobs in America that we couldn’t create. Perhaps at least we have learned an important lesson about the harms that can follow when regulators turn too quickly to their enforcement powers instead of dialogue, especially with good faith actors. There is a better way.”
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A Large Win For DeFi As A Complete
The SEC’s resolution to drop its investigation into Uniswap Labs, the entity behind the decentralized trade, marks a serious shift in how the regulator views decentralized finance (DeFi). Traditionally, the SEC has scrutinized DeFi platforms for potential violations of securities legal guidelines, usually arguing that sure tokens or actions fall beneath its jurisdiction. Nonetheless, current developments counsel the company is re-evaluating this strategy.
Netizens deem this to be an enormous win, not only for Uniswap Labs however for DeFi as a complete.
“It reaffirms what we’ve said all along: that decentralized technology and self-custody are inherently different from the centralized, intermediated systems they aim to replace,” stated Adams.
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Key Takeaways
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The SEC’s resolution to drop its investigation into Uniswap represents greater than only a single case dismissal; it indicators a possible turning level in US crypto regulation
Uniswap Labs had been beneath investigation by the SEC for allegedly providing unregistered securities via its platform.
The publish SEC Drops Uniswap Investigation, No Disciplinary Action appeared first on 99Bitcoins.
