Hassan Maishera
The Uniswap team announced via X on Wednesday that the United States Securities and Exchange Commission has served Uniswap Labs with a Wells Notice. A Wells Notice notifies firms of the substance of charges that the regulator intends to bring against them and allows them to submit a written statement to the ultimate decision maker.
Uniswap Labs said they would fight the charges as they believe that the products they offer are legal and transformative. Tokens traded on secondary markets like Uniswap are not investment contracts and the Uniswap Protocol itself is a decentralized, autonomous set of smart contracts that run without any organization, individual, or entity behind them. As such, Uniswap is not a securities exchange, the team concluded.
Uniswap is a decentralized exchange protocol built on Ethereum. To be more precise, it is an automated liquidity protocol. There is no order book or any centralized party required to make trades. UNI, the native token of Uniswap, is currently trading at $9.371, down by 16% in the last 24 hours.
