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Uniswap Challenges SEC Wells Notice, Defends Ethereum-Based DeFi Innovation

May 21, 2024, 05:37 PM

Uniswap has formally responded to the Wells notice issued by the U.S. Securities and Exchange Commission (SEC) in April. The decentralized finance (DeFi) platform argues that the SEC lacks a legal basis for its claims. Uniswap Labs emphasized that its protocol represents a significant innovation in commerce, enabling near-instant, intermediary-free, and secure trading of assets. The response also highlights the importance of open-source technology in making markets more efficient and safe. Uniswap contends that tokens are merely a file format, akin to PDFs, and that its protocol is a general-purpose internet protocol. The company asserts that regulatory actions against new technologies could stifle innovation and harm well-resourced companies capable of defending themselves. Uniswap Labs moved to quash a looming regulatory battle over Ethereum's dominant decentralized crypto exchange.