SEC Backs Off: Uniswap Wins Legal Battle After Years of Scrutiny

• Uniswap’s SEC victory marks a turning point, easing regulatory pressure on DeFi and fostering innovation in the U.S. market.
• The SEC’s shift from enforcement to structured regulation signals a more balanced approach to crypto oversight under new leadership.
• With cases dropped against Uniswap, Coinbase, and others, DeFi firms can focus on growth instead of costly legal battles.

The U.S. Securities and Exchange Commission (SEC) has officially closed its investigation into Uniswap Labs. Hayden Adams, Uniswap’s founder, revealed that the agency initially pursued claims that the company operated as an unregistered broker, exchange, and clearing agency. 

Moreover, it alleged that the project issued unregistered securities. However, these claims have now been dropped. Adams emphasized that the investigation was baseless, consuming years and millions in legal expenses. He also highlighted the stress and disruption caused by regulatory scrutiny.

SEC Drops Case Against Uniswap Labs

In April, the SEC issued a Wells notice to Uniswap Labs, signaling potential enforcement action. However, as of yesterday, the investigation has ended without any charges. This move aligns with the agency’s recent shift in its approach toward crypto regulation. The closure of this case follows a series of similar decisions, including those concerning Robinhood Crypto and OpenSea.

Additionally, Uniswap Labs celebrated the outcome, stating that their work remains legally sound and historically significant. The DeFi Education Fund’s chief legal officer, Amanda Tuminelli, remarked that this development empowers DeFi firms to focus on innovation rather than legal battles.

Regulatory Shift in the Crypto Landscape

The SEC’s evolving stance on crypto is becoming more apparent. Former SEC Chair Gary Gensler spearheaded a regulatory approach reliant on enforcement rather than clear guidelines. However, his resignation in January led to a leadership shift. Acting Chairman Mark Uyeda is now leading the agency toward a more structured approach. Consequently, the SEC has dissolved its Crypto Enforcement Unit and formed a new Crypto Task Force., Commissioner Hester Peirce, known for her pro-crypto views, is guiding this transition.

Moreover, the SEC is now reconsidering its legal battles against major crypto firms. The agency has agreed to drop its case against Coinbase, pending commissioner approval. This shift indicates a more collaborative regulatory future, ensuring that DeFi projects like Uniswap can thrive within the U.S. rather than being driven offshore.