SEC is preparing to sue Uniswap

The US Securities and Exchange Commission (SEC) is preparing to file a lawsuit against Uniswap Labs, the developer company of the largest decentralized exchange Uniswap. Uniswap Labs announced in its official statement that it received Wells notification from the SEC.

Wells notice is the official document issued by the SEC as a result of an investigation process, when the SEC is considering filing a lawsuit against an individual or company.

Emphasis on “political effort”

Uniswap Labs stated that all of their existing products will continue to operate normally and they will continue to develop new products. The company described the lawsuit as “a political effort to target the top actors developing technology on blockchains.” “If the SEC attacks new, transparent technologies that could create opportunity, reduce costs, and create opportunities for Americans, the United States will fall behind the innovation that could strengthen consumer freedom,” the statement said. “We are disappointed that we may have to fight a U.S. government agency to protect innovation and economic freedom.” statements were included.

“The law is clear, the SEC has no authority”

Uniswap Labs argued that the law is clear that the SEC only has jurisdiction over assets that are legally classified as “investment contracts.” Emphasizing that the court decision in the SEC and Ripple case clearly shows that secondary market transactions in digital assets do not constitute investment contracts, the company said, “Assets traded on the Uniswap protocol are such assets.” said.

Finally, the statement said:

“We are confident that our products are on the right side of the law and our work is on the right side of history. “As our legal team continues this fight, we will continue to do what we do best: Build.”

Uniswap’s UNI token dropped by approximately 8 percent in the first minutes after the news.