SEC Drops Uniswap Probe: A Win for DeFi

The U.S. Securities and Exchange Commission (SEC) has dropped its investigation into Uniswap Labs, the developer behind the leading automated market maker (AMM), according to a Friday report. The SEC had previously informed Uniswap about its intention to take the popular cryptocurrency project to court, claiming that Labs was an unregistered broker under the previous administration led by former Chair Gary Gensler.

This move by the SEC comes on the heels of the agency's decision to drop its widely covered lawsuit against Coinbase, the most popular centralized exchange in the U.S., earlier this month. On Monday, the agency also ditched its probe into Robinhood Crypto.

Cryptocurrency lawyer Jake Chervinsky commented on the most recent development, stating, "It's a travesty that great companies like Uniswap Labs had to waste so much time and money fighting regulatory overreach." Uniswap described the SEC's move as a "huge win" for the decentralized finance (DeFi) sector, reaffirming that the technology behind the project is on "the right side of the law."