SEC Drops Uniswap Labs Probe, Boosting Crypto Hopes

The U.S. Securities and Exchange Commission (SEC) has concluded its investigation into Uniswap Labs without taking enforcement action, raising hopes among the crypto community that the agency's approach to digital assets may be shifting. This development comes as a significant boost for the XRP army, who are eagerly awaiting the outcome of the ongoing legal battle between the SEC and Ripple, the San Francisco-based cross-border payment firm.

The SEC's decision to close the Uniswap Labs investigation without taking action follows a Wells notice issued in April 2024, which alleged that the decentralized exchange (DEX) operator was running an unregistered securities exchange, acting as an unlicensed broker and clearing firm, and offering an unregistered security without proper approval. However, after a comprehensive review, the current SEC leadership determined that Uniswap Labs did not commit any violations.

The news has been met with optimism by industry participants, who see it as a potential turning point in the SEC's approach to decentralized finance (DeFi). This dismissal also follows the regulator's decision to drop its investigation into Robinhood Crypto, suggesting a broader shift in its approach to crypto regulation.

Ripple Labs, which has been embroiled in a legal battle with the SEC since December 2020, is now hoping for a similar outcome in its case. The lawsuit, one of the most high-profile in the crypto space, has set important precedents concerning the status of XRP and other digital assets. Former SEC officials have speculated that the Ripple lawsuit is next on the chopping block, given the agency's new pro-crypto stance.

While the announcement has excited the XRP and UNI communities, it has not significantly impacted Uniswap Labs' stock price, which is currently up only 0.13% from yesterday. However, the UNI token has seen a notable boost, climbing over 3.5% and experiencing an 86% increase in trading volume.