Leading decentralized cryptocurrency exchange Uniswap has disclosed that it received a Wells notice from the U.S. Securities and Exchange Commission (SEC), signaling the regulator’s intent to pursue enforcement action against it.
A Wells notice is used by the regulator to inform entities of possible enforcement action. After receiving a Wells notice, companies have a chance to write back to the SEC and explain why they should not move forward with a lawsuit.
Uniswap’s Chief Operating Officer Mary-Catherine Lader and Chief Legal Officer Marvin Ammori elaborated on the Wells notice during a press conference, detailing that the SEC’s focus appears to be on Uniswap potentially operating as an unregistered securities exchange and broker.
Ammori cited a recent court decision involving the SEC’s case against Coinbase, where a judge ruled in favor of Coinbase Wallet not being considered a broker, to suggest Uniswap may be able to beat the SEC on some charges.
He went on to criticize the SEC for prioritizing enforcement actions against established players like Uniswap and Coinbase, while seemingly neglecting to address potential malpractices within other crypto businesses.
Uniswap has denied the tokens it offers are securities, arguing tokens “are a digital file format, like a pdf or a spreadsheet, and can store many kinds of values.” Per the firm’s blog post, tokens aren’t intrinsically securities “just as every sheet of paper is not a stock certificate.”
Receiving a Wells notice does not automatically mean that the SEC will take enforcement action, but often precedes it. The status of Uniswap’s token, UNI, within the SEC’s allegations remains unclear.
- SEO Powered Content & PR Distribution. Get Amplified Today.
- PlatoData.Network Vertical Generative Ai. Empower Yourself. Access Here.
- PlatoAiStream. Web3 Intelligence. Knowledge Amplified. Access Here.
- PlatoESG. Carbon, CleanTech, Energy, Environment, Solar, Waste Management. Access Here.
- PlatoHealth. Biotech and Clinical Trials Intelligence. Access Here.
- Source: https://www.cryptocompare.com/email-updates/daily/2024/apr/11/
