Uniswap counters the SEC’s accusations, claiming that its token UNI is not a financial security, but simply a file format.
Uniswap finds SEC’s argument “weak”.
Last April, Uniswap Labs, the world leader in decentralized exchanges (DEX), has received a Wells notice from Securities and Exchange Commission (SEC), indicating an intention to take coercive action against the platform. May 21, Uniswap has published its response, qualifying the legal argument of the SEC of “weak”.
Marvin Ammori, General Counsel d’Uniswap, a refuted the idea that all tokens should be considered as securities. He compared tokens to file formats such as PDF or JPEG, claiming that they can represent various values such as products, memes or network access.
A token is just a file format, such as a PDF or JPEG. It can represent any value: product, meme or network access. A PDF is not necessarily an action, a token is not necessarily a title.
Marvin Ammori
Ammori also accused the SEC to distort the definitions of terms such as exchange, broker or investment contract to include the activities of Uniswap.
In addition, Ammori questioned the accusations concerning the broker role attributed to the interface and wallet ofUniswap referring to a recent ruling in favour of Coinbase in a similar case. Uniswap is gearing up for a legal battle, confident in its previous successes with cases such as Grayscale and Ripple.
A new legislative framework ready to change the game?
The response from Uniswap arrives at a key moment. On May 21, despite President Biden’s opposition, representatives pass the 21st Century Financial and Technological Innovation Act. This act reassigns regulatory prerogatives over cryptocurrencies to the SEC and the Commodity Futures Trading Commission (CFTC).
This new legislation could render obsolete the SEC versus Uniswap with supervision partially transferred to CFTC.
Uniswap s response to the SEC’s accusations marks the beginning of a major legal conflict. Following similar battles waged by Coinbase and Binance, Uniswap is preparing to vigorously defend its activities in a rapidly changing regulatory environment.
The world leader in decentralized exchanges, Uniswap Labs, is waging a long-running legal battle against the US Securities and Exchange Commission (SEC). In a methodical rebuttal of the Wells opinion, the company argues forcefully that its tokens are files and cannot be automatically assimilated to financial securities.
As a journalist at Coinpri, I’ve been captivated by the world of bitcoin and blockchain since 2020. The decentralized aspect of Bitcoin particularly piqued my interest. Since then, I’ve been working constantly to spread my knowledge, hoping one day to see a world where everyone fully enjoys their financial freedom.
