SEC Drops Uniswap Labs Investigation, Turns Positive Toward Crypto

The U.S. Securities and Exchange Commission (SEC) has decided to end its investigation into Uniswap Labs, the company announced on Tuesday. The move comes after the agency dropped similar probes into other major companies in the cryptocurrency space.

Uniswap Labs, the developer behind the world's largest decentralized exchange Uniswap, was accused of operating an unregistered securities exchange and acting as an unlicensed broker-dealer. However, according to a report from **The Wall Street Journal**, the SEC has closed the investigation with no plans to take any legal action.

This isn't the first time the SEC has dropped its investigation in recent times. Just days ago, cryptocurrency exchange Coinbase announced that the SEC had dropped its case against it. Meanwhile, OpenSea, one of the largest NFT marketplaces, also said the SEC had closed its investigation into a Wells Notice it received last year. Similarly, Robinhood announced on Monday that its investigation into its crypto trading platform had also been suspended without further action.

Uniswap received a Wells Notice from the SEC last April, in which the agency accused the Uniswap DEX of operating without proper registration. A Wells Notice is a formal written warning that the regulator is considering suing a company, and gives the company an opportunity to respond.

Uniswap founder Hayden Adams has since vigorously defended his company, saying it is on the “right side of history.” Adams also criticized the SEC for using taxpayer-funded resources to pursue the case.

The SEC’s recent shift in stance is a sign that the agency is loosening its approach to companies in the crypto industry. Under the new leadership of Acting Chairman Mark T. Uyeda, the SEC is working to address regulatory actions that took place under the previous administration.

Another notable change is that Uyeda appointed Republican Commissioner Hester Peirce to lead a crypto task force. The group is working with industry players to develop crypto-specific rules, a positive step forward for the growth of the sector.

Hester Peirce has been a vocal opponent of the SEC’s targeting of decentralized exchanges and protocols, and the SEC’s shift in stance bodes well for the DeFi (Decentralized Finance) industry.

Amanda Tuminelli, chief legal officer at the DeFi Education Foundation, also commented on the SEC’s decision: “It is a remarkable move for the SEC to formally and publicly end their investigation into Uniswap Labs. It provides peace of mind for DeFi companies, allowing them to move from defense to focusing on building decentralized technology.”

This new move by the SEC could help usher in a more collaborative era between regulators and companies in the crypto space, promoting sustainable development and regulatory compliance for this booming industry.