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Uniswap Hits Back at SEC, Says It's Ready to Fight in Court

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Tue, 21/05/2024 - 19:32
Uniswap Hits Back at SEC, Says It's Ready to Fight in Court
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Decentralized exchange giant Uniswap has filed its response to the Wells notice it recently received from the U.S. Securities and Exchange Commission. 

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Uniswap has accused the agency of attempting to significantly expand its jurisdiction so that it covers all digital value. According to Uniswap CEO Hayden Adams, the SEC wants to become "the world internet police."

"This SEC’s reckless approach to crypto has not protected consumers and has caused immeasurable harm in the US - to individuals, businesses, and the state itself. We should lead on internet innovation, not stifle it," Adams said. 

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Uniswap claims that it is not required to be registered as a broker. It has predicted that the SEC's authority over technology will be further narrowed due to its decision to litigate this issue. 

The defendant insists that the underlying transactions on the protocol are not securities transactions, comparing Uniswap to Coinbase Wallet. In March, U.S. District Judge Katherine Failla ruled that the latter was not conducting brokerage activities.

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Furthermore, Uniswap claims that it does not solicit users to perform swaps on the protocol, adding that its general public statements do not amount to solicitation. In addition, the defendant has stated that it does not provide advice to the users of the protocol or the interface. 

Uniswap neither acts as a depository nor engages in clearing activity, according to its response. The SEC suggested that Uniswap's contracts serve as depositories for securities. 

The distribution of the native UNI token was also addressed in the lawsuit, with Uniswap stating that it does not satisfy the requirements of the Howey test in order to be recognized as a securities offering. 

Adams has stated that Uniswap is "ready to fight" the SEC in court. As reported by U.Today, it was sued by the agency in April.  

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