Thomas Daniels
The U.S. Securities and Exchange Commission (SEC) has ceased its investigation into Uniswap Labs, the developer behind Ethereum’s leading decentralized exchange, as part of a broader shift in regulatory approach under President Trump. The SEC’s newly established Crypto Task Force has also halted enforcement actions against other prominent cryptocurrency and decentralized finance (DeFi) entities, including Coinbase, OpenSea, and Robinhood.
Previously, Uniswap Labs faced allegations of facilitating unregistered securities trading, operating as an unregistered broker-dealer, and running an illegal clearinghouse, as detailed in a 2024 Wells notice and subsequent lawsuit. The company consistently refuted these claims. In May, Chief Legal Officer Marvin Ammori stated, “If forced to litigate, we will win.”
The SEC’s decision to discontinue these investigations signals a significant change in the regulatory landscape for DeFi platforms. Uniswap Labs’ founder and CEO, Hayden Adams, expressed relief but also highlighted the challenges posed by the prolonged inquiry. On X, he remarked that the SEC attempted “to force decentralized finance into a regulatory framework that doesn’t fit.”
Adams further noted the extensive resources expended during the three-year investigation, emphasizing the personal and financial toll it exacted. He underscored the necessity for clear and appropriate regulatory guidelines that foster innovation without imposing undue burdens on emerging technologies.
This development underscores the evolving relationship between regulatory bodies and the rapidly advancing DeFi sector, highlighting the imperative for frameworks that balance oversight with the unique characteristics of decentralized financial systems.
