Uniswap has been grabbing news media headlines lately following its involvement in a regulatory crackdown with the United States Securities and Exchange Commission (SEC), sparking fresh discourse of a potential lawsuit involving the trading platform and the SEC.
Amidst ongoing debate on which party is bound to emerge victorious, Uniswap Chief Executive Officer (CEO) Hayden Adams has waded into the discussion, citing the specifics of the lawsuit and why he believes the company is bound to win over the giant regulatory body.
Uniswap vs. SEC Potential Lawsuit
Recall that on Wednesday last week, Uniswap received a Wells Notice from the SEC, indicating the regulatory body's plan to take enforcement action against the exchange.
While the basics for the SEC to file a lawsuit against Uniswap seems scant, there are chances that the reason might hinge on enhancing the sales of unregistered products, like Binance and Coinbase; both trading platforms are currently on the SEC radar, as they continue to seek settlement court.
Uniswap CEO Expresses Optimism Over Winning SEC-Uniswap Lawsuit
In a recent interview with Bankless anchors, Adams expressed confidence that Uniswap is bound to come out victorious against the SEC.
He disclosed that the Uniswap vs. SEC lawsuit centers around three key areas and argued that Uniswap has not defaulted in any of these areas the SEC is holding on to.
According to Adams, the first issue SEC has raised is whether Uniswap's interference constitutes the decentralized exchange (DEX) to be referred to as a broker.
Defending Uniswap's position, Adams pointed out the similarity between Uniswap's interface and other platforms like Coinbase, stating that these similarities are evident in Uniswap's wallet and web app.
Going further, he cited the recent court ruling in favor of Coinbase over a claim similar to the one above, adding that, like Coinbase, Uniswap will emerge triumphant in this aspect of the case.
SEC's second claim borders on whether Uniswap's tokens qualify as securities. Against this claim, Adams explained that Uniswap has never engaged in illegitimate operations and has adhered to every regulatory guideline. The CEO stressed that considering existing regulations, UNI tokens do not meet the criteria for securities.
Adams further revealed that the SEC falsely accuses Uniswap's protocol of operating as an unregistered securities exchange; this accusation is the third issue the lawsuit borders around. Countering this claim, Adams noted that the protocol runs autonomously on the blockchain and is independent of Uniswap Labs' control.
