SEC Drops Uniswap Charges After Three-Year Probe

The founder of Uniswap, Hayden Adams, recently shared that the U.S. Securities and Exchange Commission (SEC) had been investigating the company for over three years, alleging that Uniswap Labs was operating an unregistered broker-dealer, exchange, and clearing agency, and issuing unregistered securities. However, these charges have now been dropped.

Uniswap Labs is not a broker-dealer, and the Uniswap protocol is not an unregistered exchange or clearing agency, nor is it operated by Labs. UNI, the native token of the Uniswap protocol, is not a security. The SEC's investigation was criticized for lacking a clear legal basis and being a form of selective enforcement strategy, attempting to force decentralized finance (DeFi) into an inapplicable regulatory framework while refusing to provide clear rules or compliance pathways.

The investigation lasted for over three years, consuming significant resources and personal time for Adams and the Uniswap team. The federal investigation was described as highly intrusive and stressful, with the legal world saying, "The investigation itself is the punishment." Adams believes that this should not be the cost of American innovation.

Adams expressed satisfaction with the new SEC leadership's more constructive attitude and looks forward to working with Congress and regulatory agencies to develop rules truly applicable to DeFi. He hopes that this will encourage innovation, enhance transparency and financial market access, and allow the technology to thrive in the United States rather than being forced overseas.