The US Stock Exchange and Securities Commission (SEC) has closed its investigation against Uniswap, marking a significant milestone in the regulation of decentralized finances (Defi). This outcome reinforces the position that Uniswap operates within the legal framework, and the lack of action could set a precedent for the Defi ecosystem in the US and worldwide.
The SEC concluded its research on Uniswap without taking action, determining that the platform did not operate as an unregistered brokerage or exchange, nor did it issue unregistered securities. This decision was announced by the Uniswap Labs team in a message posted on their X account. The case dates back to April 2023, when Uniswap Labs received a “Wells notice,” a warning that usually precedes a compliance action by the SEC. However, the agency’s recent decision to close the investigation without taking formal measures confirms that it did not find enough basis to proceed with charges.
The closure of the investigation without legal consequences not only benefits Uniswap Labs but also offers relief to the Defi community as a whole. If the SEC had taken measures against the platform, it would have set a precedent that could have resulted in greater repression against other decentralized protocols. As Uniswap Labs stated on Twitter, “In April, the SEC issued a Wells Notice claiming that Uniswap Labs operated as an unregistered broker, operated an exchange, and issued an unregistered security. As of yesterday, that investigation has officially been closed, and the SEC is taking no enforcement action.”
The decision has several possible key implications:
* Greater legal certainty for Defi in the US: The decision suggests that decentralized exchanges can operate without registering as traditional securities, provided they comply with certain regulatory principles.
* Impulse for sector growth: Investors and developers could feel more confident in expanding Defi projects without the immediate fear of facing regulatory litigation.
* Influence in future regulations: The lack of action by the SEC could encourage a more nuanced posture towards Defi platform regulation.
Although the news represents a breath of fresh air for the Defi ecosystem, it does not mean that the SEC has changed its vision of cryptocurrencies in general. The agency still maintains open investigations against other platforms, and its position towards decentralization remains uncertain. The current administration of the SEC has shown a stricter approach to the crypto industry, with recent actions against centralized exchanges and projects that issued tokens without complying with securities regulations. However, the decision on Uniswap Labs suggests that the SEC could be reconsidering its approach in some specific cases.
The regulatory emphasis came to place during the administration of former SEC President Gary Gensler, under which the agency assumed a very aggressive position, premise that most cryptocurrencies qualified as securities. In contrast, the Trump administration took a more conciliatory position with the crypto sector. Now, under the interim direction of Mark Uyeda, the agency has created a new working group for the crypto sector, headed by Commissioner Hester Peirce, known for her position in favor of this market, and has begun to evaluate the classification of certain tokens as “non-securities.”
The closure of the investigation on Uniswap Labs represents a victory for Defi, as it demonstrates that certain decentralized protocols can operate within the existing regulatory framework without being automatically considered securities. However, the lack of regulatory clarity remains a challenge for the sector. With this outcome, the future of Defi in the US seems more promising, but much remains to be defined in terms of governmental regulations and policies. Meanwhile, the industry continues to evolve, with a community of developers and users seeking to build a more open and accessible financial system.