SEC Drops Investigation Into Uniswap Labs, Marking a Shift in Crypto Regulation

• The SEC ended its investigation into Uniswap Labs without taking further action, closing a case that began with a Wells Notice in 2024.
• The SEC recently dismissed cases against Coinbase and Robinhood, indicating a potential shift in its cryptocurrency enforcement strategy.
• UNI token saw initial volatility after the SEC update, dropping 0.1% in 24 hours after briefly surging 3% following the announcement.

The U.S. Securities and Exchange Commission (SEC) has officially ended its investigation into Uniswap Labs without further action. According to Uniswap Labs, this decision marks the closure of a case that began with a Wells Notice issued in April 2024. 

SEC’s Regulatory Shift in Crypto Cases

Uniswap Labs stated that the conclusion of the investigation reaffirms its compliance with legal requirements. The firm emphasized that its decentralized exchange operates transparently and efficiently within the framework of existing regulations.

The decision of the SEC is similar in coming after similar actions on other cases as follows. At the beginning of the month, its representative have also dismissed the legal case against Coinbase Inc. Contrary to this, Robinhood revealed that the SEC had recently discontinued its case involving its unit of crypto. Such measures suggest that there are new developments in the commission’s policy regarding enforcement of cryptocurrencies.

Uniswap’s Response to the Case Closure

Following the SEC’s decision, Uniswap Labs Founder Hayden Adams stated that the platform is not a broker and operates within legal boundaries. He criticized the SEC’s actions, describing them as an attempt to enforce regulations without a clear legal basis.

“They went after us despite having no clear legal basis, as part of a strategy of arbitrary enforcement to try to force DeFi into a regulatory framework that doesn’t fit—all while refusing to provide clear rules or a path to compliance,” Adams wrote on X.

Other industry figures also reacted to the news. Jesse Powell, a developer of the Base protocol, responded with a ‘Salute’ emoji. Meanwhile, members of the crypto community expressed support for Uniswap Labs and its legal stance.

Market data shows that UNI, the native token of Uniswap, has faced volatility following the SEC update. According to CoinMarketCap, UNI initially experienced a selloff before stabilizing. The token dropped by 0.1% in the past 24 hours after surging 3% within an hour of the SEC’s decision.