According to a Friday report by The Wall Street Journal, the U.S. Securities and Exchange Commission has dropped its investigation into Uniswap Labs, the developer behind the leading automated market maker (AMM).
As reported by U.Today, the SEC informed Uniswap about its intention to take the popular cryptocurrency project to court.
Under the previous administration, which was led by former Chair Gary Gensler, the SEC attempted to claim that Labs was an unregistered broker.
Earlier this month, the agency also dropped its widely covered lawsuit against Coinbase, the most popular centralized exchange in the U.S. On Monday, the agency also ditched its probe into Robinhood Crypto.
Godfrey Benjamin"It's a travesty that great companies like Uniswap Labs had to waste so much time and money fighting regulatory overreach," cryptocurrency lawyer Jake Chervinsky commented in response to the most recent development.
Uniswap Labs described the SEC's move as a "huge win" for the decentralized finance (DeFi) sector. According to the company, this reaffirms that the technology behind the project is on "the right side of the law."
Tomiwabold OlajideCEO Hayden Adams claims that the SEC went after the software company despite having g"no clear legal basis." During the investigation, which lasted a total of three years, the company had to waste "millions of dollars," according to Adams.
He has expressed his gratitude to the new SEC leadership for taking a more "constructive" approach compared to the previous administration. "The best days for DeFi are ahead," Adams added.
Dan Burgin
Vladislav Sopov