Uniswap’s founder calls for DeFi community unity.
The US Securities and Exchange Commission (SEC) sent a Wells notice to Uniswap Labs, threatening enforcement action against the company behind the leading decentralized exchange (DEX), Fortune reported on Wednesday. Uniswap confirmed the report, stressing that it would fight back.
Under the SEC investigation process, Uniswap, as a potential defendant, has a fair chance to present its case and respond within 30 days. However, in most cases, if the SEC issues a Wells notice, it will likely take legal action against the recipient.
Responding to the SEC’s move, Uniswap’s founder Hayden Adam said he was not surprised, only “annoyed, disappointed,” but is “ready to fight” as he believes Uniswap’s products are legal and beneficial.
Following the announcement, Uniswap’s UNI token price plummeted nearly 11% and shows no signs of immediate recovery, according to CoinGecko data.
The SEC’s latest action follows its request for information from Uniswap’s competitor, SushiSwap, last year and coincides with the SEC’s increased focus on regulating DeFi, an area that SEC Chair Gary Gensler has likened to the ‘Wild West.’