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Uniswap Labs Freed from SEC Review, Enforcement Actions Halted

Uniswap Labs Freed from SEC Review, Enforcement Actions Halted

Date: 2025-02-25 19:19:11

During President Trump's tenure, the U.S. Securities and Exchange Commission (SEC) ceased its probes into multiple cryptocurrency and decentralized finance companies, including Coinbase, OpenSea, Robinhood, and most recently, Uniswap Labs.

Uniswap Labs, the developer of Ethereum's most traded decentralized exchange, is no longer subject to legal proceedings from the SEC. This change follows the Crypto Task Force's revamp of enforcement actions initiated by past leadership.

Uniswap had been accused of enabling unregistered securities trading on its multi-chain decentralized exchange, acting as an unregistered broker-dealer, and running an illicit clearinghouse, according to a 2024 Wells notice and lawsuit issued by the agency.

The decentralized finance startup refuted these allegations, as did several other companies facing comparable charges. "If compelled to litigate, we will emerge victorious," stated Uniswap's chief legal officer Marvin Ammori in May.

In April, the SEC issued a Wells notice claiming that Uniswap Labs functioned as an unregistered broker, operated an exchange, and distributed an unregistered security

As of yesterday, that investigation has formally been concluded, with the SEC opting not to pursue any enforcement measures

This represents a significant development for…

Uniswap is the newest cryptocurrency firm to be absolved from SEC scrutiny in 2025. The agency, through its recently established Crypto Task Force, has also dismissed cases against Coinbase and Robinhood. Investigations into non-fungible token marketplace OpenSea concluded without further action.

Read More: "Allaire of Circle Advocates for Regulatory Scrutiny of Dollar-Linked Stablecoins in U.S."

"They targeted us despite lacking a clear legal basis," said Uniswap Labs founder and CEO Hayden Adams on X, adding that the SEC tried "to coerce decentralized finance into a regulatory framework that is ill-suited."

The decision bolstered the regulatory outlook for decentralized finance and emphasized the necessity for more transparent rules. However, Adams acknowledged the toll the investigation had taken.

This investigation consumed over 3 years, compelling us to squander immense amounts of time and millions of dollars. It also had a personal impact — federal investigations are intrusive and stressful to the point where lawyers often say that "the investigation IS the punishment." That should not be the cost of innovation in the US.

Hayden Adams, Uniswap Labs founder and CEO

Read More: "Cryptocurrency Job Market Surges in 2024, Gaining 80% over 2023, According to Dragonfly Capital"