Decentralized crypto exchange Uniswap (UNI) has become the next victim of the US Securities and Exchange Commission (SEC). This week the financial regulator issued a Wells Notice to the company.

A Wells notice is a notice used by a financial regulator to notify the company of potential enforcement action.

While the exact details remain vague, many suggested alleged securities law violations, citing the Commission’s recent lawsuits against other companies. This development prompted mixed reactions from industry leaders, policy observers, and former SEC officials.

Uniswap does not accept this

Hayden Adams, the founder of Uniswap, revealed the development on X (formerly Twitter) with plans to defend decentralized finance (DeFi) all the way to the Supreme Court. Adams noted that he is irritated, disappointed and ready to fight, while expressing confidence in the exchange’s products. He said the following:

“Yes, I am frustrated that the SEC seems more concerned with protecting opaque systems than protecting consumers. And that we have to fight against a US government agency to protect our company and our industry.”

He added that DeFi is worth fighting for by calling on community support to ensure blockchain reaches its full potential. Cardano’s Charles Hoskinson emphasized the management of the chain and decentralization in the market, adding that these concepts must prevail.

Uniswap legal counsel Marvin Ammori called the SEC’s action an abuse of power and cited similar actions by the federal regulator.

Global regulators continue their assault on the markets with lawsuits and stricter legislation. In the wake of Uniswap’s Wells post, pro-SEC analysts have criticized the industry’s actions when asked for accountability.

John Stark, a former SEC official, said that the announcement was not surprising, but criticized Uniswap’s PR strategy. He flagged the actions of crypto companies making futile attempts to unite the crowd against the regulators. He described it as follows:

“Expect the SEC enforcement staff to scramble and file a sweeping and robust federal complaint, which will inevitably survive the typical motion to dismiss, prevail on the typical motion for summary judgment, and prevail in virtually every other legal matter that follows.”


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